Yesterday morning on CNN, “Money Expert” Clark Howard recommended that home owners who are considering selling their home in the next five years investigate refinancing into a 5/1 adjustable rate mortgage. Why would he suggest such a “risky” product? Interest rates for adjustable rate mortgages are extremely low right now and if you’re not going to have the home for more than 5 years, you could save a significant amount of money. [Read more…]
Clark Howard Suggests 5/1 ARMs for Refinancing
June 15, 2011 by Leave a Comment
Are Adjustable Rate Mortgages Worth Your Consideration?
December 15, 2010 by Leave a Comment
Originally published December 2010. Updated March 2026.
Adjustable-rate mortgages — ARMs — tend to get a bad reputation, largely because of their association with the mortgage crisis of the mid-2000s. But lumping all ARMs together misses an important distinction: the problem back then wasn’t adjustable rate mortgages themselves, it was option ARMs and loose lending standards. A well-structured ARM, used in the right situation, can still be a smart financial tool.
How ARMs Work
ARMS Defined
April 8, 2007 by 2 Comments
Adjustable Rate Mortgages, also referred to as ARMs, come in many shapes and sizes. This post will be focusing on fixed period ARMs, such as the 3/1, 5/1, 7/1, 10/1…etc. that feature a fixed rate period before adjusting.
