The Wall Street Journal reports that Adjustable-Rate Mortgages (ARMs) are making a comeback. This time, though, ARMs are being used by borrowers with strong credit who are using the loans to take out large “jumbo” mortgages, rather than subprime borrowers.
Read the Wall Street Journal article: Adjustable-Rate Mortgages Make a Comeback.
ARMs comprised 31% of mortgages in the $417,001-to-$1 million range that were originated during the fourth quarter of 2013, according to data prepared for The Wall Street Journal by Black Knight Financial Services, formerly Lender Processing Services, a mortgage-data and services company. That is up from 22% a year earlier and the largest proportion since the third quarter of 2008.
Is an Adjustable-Rate Mortgage Right for You?
Everyone has different financial circumstances, and adjustable-rate mortgages are a good choice for some borrowers.
If you would like to explore ARMs to see if they are a good choice for you, contact us for a free Mortgage Checkup.