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Conforming Fixed Rate Mortgages Are Now Priced Better Tan Comparable ARMs
December 11, 2008 by James K Barath, CMPS® · Leave a Comment
It’s the age-old question for home buyers in need of a mortgage:
- Get low mortgage payments for better cash flow
- Get long-term payment stability for better budget planning
But because of government intervention and lingering questions about the economy, fixed-rate mortgages are now pricing cheaper than their adjustable-rate counterparts.
Based on today’s mortgage market, therefore, home buyers can get both.
Versus a comparable 5-year ARM, conforming fixed-mortgage rates are priced roughly 0.250 percent lower and have been over the past 19 days. The quarter-percent difference equates to $33 saved per month on a $200,000 home loan.
Mortgage markets are ever-changing so rates we can’t know if this pricing anomaly will last. But, while it does, the decision to choose Fixed over ARM is a lot simpler.
(Image Courtesy: Bankrate.com)
James K Barath, CMPS®
James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, qualified liability advisor and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval ! His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!
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