When most people think about mortgages, they picture a 30-year fixed-rate loan. But sometimes, going with an Adjustable-Rate Mortgage (ARM) can be the smarter play — especially in today’s rate environment.
How an ARM Works
An ARM offers a fixed interest rate for an initial term (commonly 5, 7, or 10 years). After that, the rate can adjust annually based on market conditions. During the fixed period, the interest rate is often significantly lower than a traditional 30-year fixed loan.
Why It Can Be a Smart Move
The savings over that initial period can be substantial. For example, if a 7-year ARM offers a rate that’s 0.75% lower than a 30-year fixed, the monthly savings multiplied over seven years can total thousands of dollars — money that could go toward travel, renovations, or other investments.
Of course, there’s always some risk of rates rising later. But if you expect to sell, refinance, or relocate before the fixed period ends, an ARM can be a great way to maximize your financial flexibility now.
The Bottom Line
Adjustable-Rate Mortgages aren’t for everyone, but they can be a smart play for buyers who value flexibility and upfront savings. Let’s look at the numbers together and see if an ARM fits your financial game plan.
📞 Call or text 206-949-5563 to explore your options today. ✈️
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