ARM Mortgages

ARM Mortgages Adjusting 2007 / 2008
Buyers in 2002 and 2003 Take Note

A large portion of the 5/1 ARM loans were made during 2002 and 2003 when the interest rate spread between 30 year fixed and ARM loans was significant. ARM stands for “adjustable rate mortgage”.

The 5/1 ARM is a fixed interest rate for 5 years then becomes an annually adjusting loan based on some index and margin. Many buyers signed up for this loan in the past several years.

If you or someone you know has an ARM loan, this might be a good time to examine the options. Pass this email along to anyone you know who may have an ARM.

There are several options to taking the best advantage of an ARM loan: sell the property and payoff the loan, move to another home; do nothing and allow the ARM to renew at a new interest rate; refinance to a new loan either another ARM or a fixed rate loan; convert the ARM to a fixed rate loan (an option some lenders have built into their loan).

Now may be the ideal time to review your ARM and make some decisions. If your ARM is up for renewal and a possible rate change within the next 12 months, you should evaluate your options now for a possible refinance or conversion, assuming you are not considering a move in the next 12 months.


Let us help you sort through the options and make the best choice for yourself in this maze of options available.


Jim Lubinsky, Mary Williams
Re/Max Affiliates614-766-5330 e