Let’s get those eys uncrossed, when I was a kid I was told that wasn’t safe!
BIG, HUGE, MONSTER difference between ARMS and interest only.
ARMS should NEVER be used if you intend to keep the loan long term. That’s just gambling on rates, which I DON’T recommend. ARMS are short term solutions OR band-aids if needed.
You CAN lock a fixed rate today for 30 years, and have an OPTION to pay interest only for the first 10 or 15 years.
For SOME people, depending on their overall financial situation, my statement is/was that it should be CONSIDERED.
I don’t say that it’s right for everybody.
I could easily spend 30 minutes discussing the potential benefits.
Most ARMS will continue to adjust every 6 or 12 months up to the maximum, which is always an index + a margin.
There are a few different indexes that could be used, and an unlimited number of margins.
I type too slow to give a lengthy explanation, and do actually have some loans to work on. Let me know if you’d like to be contacted privately.
