The short answer to this question is no. They are just mortgage loans that can adjust up OR down during the life of the loans. ARMs are generally considered a big red flag for people planning on getting a mortgage loan in 2022. This is partially true because of the housing bubble of 2007. Many people were taken advantage of and put into adjustable rate mortgages (ARMs) that they couldn’t afford if rates increased. When rates increased, and home values plummeted, this became one of the factors that led to massive foreclosures. Since then, many government regulations have been added to prevent something like this happening again.
Adjustable rate mortgages are a tool to use depending on the goals of the person getting the loan. Tools can be used in your favor or against it. This is another reason why we are adamant that every mortgage loan should be tailored to each individual. They are not one size fits all like you will get when you try to get loans from big online lenders, where you get ripped off on plans where your best interest, and “interest”, isn’t taken into consideration.
Here is some general information about Adjustable Rate Mortgages (ARMS):
With the right lender, they will help you choose whatever loan option works best for your lifestyle. For what is likely the most important purchase of your life, you should have a lender that makes sure you get exactly what you want and need.
For more information or to get pre-approved please contact David Watermeier (NMSL #2278016). If you are planning on buying a home now or within the next 5 years, it's best to start planning immediately.
Cell phone: 714-989-3252