Over the past 10 years or so, the narrow spread between the interest rates on fixed-rate mortgages and adjustable rate mortgages with a fixed-rate period, made fixed-rate loans the product of choice.

Recently, this has started to change, and people are noticing.  Adjustable rate mortgages with a fixed period of 3, 5, 7 or 10 years have gradually fallen to a point where they are very attractive compared to fixed rate-loans.

Who would want an adjustable rate mortgage?  It turns out that plenty of people would.

  • New homeowners who are upwardly mobile and see themselves moving up to a larger home in the next 5 to 10 years
  • People approaching retirement who are contemplating downsizing in the next 5 to 7 years.
  • Those who are subject to a job relocation and expect to be somewhere else in the foreseeable future.
  • Sophisticated borrowers with large loans who are comfortable with a moderate amount of interest rate risk and want to take advantage of the very low rates offered by fixed term ARMS.

A look back on the history of fixed term ARMS over the past 30 years reveals that those with fixed term ARMS have benefited greatly.  It turns out that many people held on to their ARMS even after they became subject to adjustment because interest rates were so low at the time of adjustment.  In many cases, their rates actually adjusted downward once they entered the adjustment period.

ARMS deserve a second look, and there may be no better time to do that than now.  Primex has added a lender that specializes in ARMS and offers the absolute best fixed term ARM products that we have seen anywhere.

So, if you think that you might benefit from the low rates offered by a fixed-term ARM, Call Primex at 301 468-5600.  There is never a cost to explore and your call is always welcome at Primex.