ARM Mortgage Rates Drop Below 4% RJ Baxter First Mortgage Corp Evergreen Colorado

April 30, 2010 - PRLog -- Adjustable Rate Mortgages have fallen well below 4%.  This opportunity can save home owners a lot of money off their payment.  

However, ARMs are not for everyone.  An ARM must be fully understood and you must be comfortable with one before getting into it.

An adjustable rate mortgage is a mortgage that has a fixed initial period, typically 5 or 7 years, and a 30 year term.  After the initial fixed period, the rate of the mortgage will adjust with the market according to an index, which is a rate that fluctuates daily with the market.

An ARM can be a very wise choice for a home owner who is certain they will not be in their home for more than the fixed period of the ARM.  

Note the illustration of the powerful savings that can be realized over 5 years with an ARM mortgage.  The chart shows that on a $240,000 mortgage, the savings on payment is $177 per month.  This translates to $10,620 in lower payments over 60 months.  

The Total Cost Analysis section shows the result of making the same payment on the ARM as on the fixed rate mortgage over 5 years.  If this strategy is applied, the home owner would owe $16,000 less on the ARM than on the fixed rate mortgage over 5 years!

If you would like an analysis of your situation and to get your ARM mortgage questions answered, you can contact RJ Baxter at the number below:

RJ Baxter
First Mortgage Corp
27902 Meadow Dr, Suite 120
Evergreen, Colorado
303-670-0137
303-638-3808
rj@rjbaxter.com
http://www.cohomesandloans.com
http://www.rjbaxter.com

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We offer professional mortgage services to our clients with access to over 30 banks and hundreds of loan programs. Our company is a credit union subsidiary, giving us access to nationwide funding, and great rates to meet your needs