10/1 ARM vs. Fixed Rate

[cameraman]

ARM rate looks lower. With 10/1 ARM , as 10 years is a long time, If the rates fall at some point in those 10 years, we just refinance it. This allows lower payments until refinance. 

Please share your thoughts and let me know if I've missed out anything.

[naaistamrabhai]

10/1 ARM lower rate, post link here...

Want to see how low it is 

[LadiesTailor]

9 minutes ago, cameraman said:

ARM rate looks lower. With 10/1 ARM , as 10 years is a long time, If the rates fall at some point in those 10 years, we just refinance it. This allows lower payments until refinance. 

Please share your thoughts and let me know if I've missed out anything.

Check 5/1 arm too… yeah 30’year fixed high vunte ARM loans are the way to go… you can do refinance when rates are down.. 

[HugoStrange]

28 minutes ago, cameraman said:

ARM rate looks lower. With 10/1 ARM , as 10 years is a long time, If the rates fall at some point in those 10 years, we just refinance it. This allows lower payments until refinance. 

Please share your thoughts and let me know if I've missed out anything.

2025 lo elagu rates thagguthai, maa kampu thatha will be back in the thella house and reduce the rates bro

[JollyReddy]

43 minutes ago, cameraman said:

ARM rate looks lower. With 10/1 ARM , as 10 years is a long time, If the rates fall at some point in those 10 years, we just refinance it. This allows lower payments until refinance. 

Please share your thoughts and let me know if I've missed out anything.

if 10/1 ARM is lower why do ppl usually opt for fixed rate 🤔

[hyperbole]

7 minutes ago, JollyReddy said:

if 10/1 ARM is lower why do ppl usually opt for fixed rate 🤔

Basically the interest payments are front loaded meaning with 30 years you are paying more towards principal vs you are paying more interest in term loans, everytime you refinance you reset and end up paying more interest.

A lot of people hedge with term loans for equity or has plans to upgrade frequently or to have affordable monthly payments 

Current circumstances lo term loans are the way to go

 

 

[Complex]

2 minutes ago, JollyReddy said:

if 10/1 ARM is lower why do ppl usually opt for fixed rate 🤔

fixed rate tho same amount of monthly payment for the next 30 years, no matter how market rate is. No surprises. 

ARM tho , 10 years varaki fixed after that let' s say on 11th year rate has increased , it will make your monthly payments higher automatically.

 

ARM only works out , if you can refinance to lower rate.  Ma relative took  7/1 ARM  long back , it worked out for him as he was able to refinance to a lower rate.

 

 

[Complex]

[JollyReddy]

2 hours ago, hyperbole said:

Basically the interest payments are front loaded meaning with 30 years you are paying more towards principal vs you are paying more interest in term loans, everytime you refinance you reset and end up paying more interest.

A lot of people hedge with term loans for equity or has plans to upgrade frequently or to have affordable monthly payments 

Current circumstances lo term loans are the way to go

 

 

annai na bendapudi english ki ee english em sync avatle.. artham kaleu but anyways thanks for taking the time to respond

[cameraman]

6 hours ago, naaistamrabhai said:

10/1 ARM lower rate, post link here...

Want to see how low it is 

It is around 1% less in 10 year ARM. No link available, it's from credit union near me.

[cameraman]

6 hours ago, LadiesTailor said:

Check 5/1 arm too… yeah 30’year fixed high vunte ARM loans are the way to go… you can do refinance when rates are down.. 

Are you on 5/1 ARM?

[LadiesTailor]

15 minutes ago, cameraman said:

Are you on 5/1 ARM?

I was and did a Refinance few years back 

[Complex]

13 hours ago, LadiesTailor said:

I was and did a Refinance few years back 

are you from austin?

[LadiesTailor]

38 minutes ago, Complex said:

are you from austin?

No bro.. only Austin batch refi chestara enti 😜😜

[phatposts]

20 hours ago, JollyReddy said:

if 10/1 ARM is lower why do ppl usually opt for fixed rate 🤔

amortization schedule ani untundi. try to understand how that works. not just looking at the schedule. adi kaasta choodatam alavataaithe its a very good thing to compare loans in general. 

as someone said above, interest rate calculation and how that is applied towards the loan.