First there was Monday. Then came Tuesday. Now it’s Wednesday. These are tested and scientifically proven facts. And around here, Wednesday means one thing – it’s Watch-It Wednesday! Our weekly video blog where we answer your mortgage questions. This week, Matt Stoffer tells us about different types of adjustable rate mortgages. Drop some knowledge on us, Matt!
If you can’t see the embedded video, watch our Adjustable Rate Mortgage video here.
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Hi, I’m Matt Stoffer – Vice President of Quicken Loans Web Center in Scottsdale Arizona. And I wanted to take a moment of your time and talk to you about the adjustable rate mortgage, also known as the ARM. The two most popular varities of the product are the 5-year and 7-year adjustable rate mortgage. What that means is you’ll have a fixed rate for 5 full years – or 60 months – if you choose the 5-year option. Or you’ll have a fixed rate for 7 years – or 84 full months – if you choose the 7-year option.
I recently bought a home in Scottsdale, Arizona, with my wife, and we chose a 7-year ARM. And that rate is going to be locked in until 2018 giving me the comfort that I’m not gonna have to worry about my rate changing – giving my wife the same comfort. It’s a fantastic product and something that many Americans can benefit from. Because with 10 years of experience in the mortgage industry, I’ve found that the average American only stays in a home for about 3-5 years. And even if they stay in the home longer, what we typically find is people look to refinance and improve their situation every 3-5 years as well.
Hopefully I’ve been able to provide you some insight into the adjustable rate mortgage product. If you have any questions, call Quicken Loans – we’ll be happy to help.
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