ARM loan worth it aa ?

[anna_gari_maata]

5/1 at current rate

[Bitcoin_Baba9]

1. Fixed Rate Period (First 5 Years)

• For the first 5 years, the interest rate is fixed—it does not change.

• Your monthly mortgage payments remain constant during this time.

2. Adjustable Rate Period (After 5 Years)

• After year 5, the interest rate can adjust once per year—hence the "1" in 5/1.

• The new rate will be based on a market index (like the SOFR or Treasury rate) plus a margin set by the lender.

• Your monthly payments can go up or down depending on how interest rates change.

Key Features:

• Lower initial rate than a fixed-rate mortgage—makes it appealing for short-term homeowners.

• Risk of higher payments after the 5-year mark.

[Bitcoin_Baba9]

ayeena current market rate tho 15year fixed vellochu ga why 5/1 ARM? ARM works only when it is 1-2% lesser than the fixed rate. Fixed rate entha and ARM rate entha cheppakunda good or bad cheppali ante anna gaaru ravalsindhe

[bommali]

8 minutes ago, anna_gari_maata said:

5/1 at current rate

Good idea. Also depends on how much Fixed ki 5/1 ki entha theda undi ani?

 

[Thokkalee]

12 minutes ago, anna_gari_maata said:

5/1 at current rate

Check the amortization calendar with 30 yrs fixed and 5/1 rate.. see how much interest and principal you are paying for the 5 years and decide.. 

[bommali]

Also please bear in mind that this temporary. Generally 5/1 Arm have a lesser interest rate when compared to 30yr. During the first 5 yrs if the interest rates fall, be ready to refinance which means maintaining your good credit score, low debt, job security and you may also have to pay some closing costs for the refinance.

[ARYA]

38 minutes ago, anna_gari_maata said:

5/1 at current rate

rate and closing?

 

[anna_gari_maata]

6 hours ago, bommali said:

Good idea. Also depends on how much Fixed ki 5/1 ki entha theda undi ani?

 

almost 0.75% theda undi

[anna_gari_maata]

6 hours ago, ARYA said:

rate and closing?

 

rate is decent 0.75% less with current fixed rate ...  no cost for refinancing ani lender said

[anna_gari_maata]

6 hours ago, Bitcoin_Baba9 said:

ayeena current market rate tho 15year fixed vellochu ga why 5/1 ARM? ARM works only when it is 1-2% lesser than the fixed rate. Fixed rate entha and ARM rate entha cheppakunda good or bad cheppali ante anna gaaru ravalsindhe

I want to save payment money for some house remodelling costs... there are significant improvements need to be done initially

[ilakatamaflia]

7 hours ago, anna_gari_maata said:

5/1 at current rate

Bro , what is the down paymnt percentage eligibility to get ARM rate ?