Written Analysis

Written Analysis - Analysis of an ARM vs. Fixed Rate...

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Analysis of an ARM vs. Fixed Rate Mortgages The low initial cost of adjustable-rate mortgages, or ARMs, can be very tempting to home buyers, yet they carry a degree of uncertainty. Fixed-rate mortgages offer rate and payment security, but they can be more expensive. Here are some pros and cons of ARMs and their fixed-rate brethren. Adjustable-rate Mortgages Advantages Feature lower rates and payments early on in the loan term. Because lenders can use the lower payment when qualifying borrowers, people can buy larger homes than they otherwise could buy. Allow borrowers to take advantage of falling rates without refinancing. Instead of having to pay a whole new set of closing costs and fees, ARM borrowers just sit back and watch the rates -- and their monthly payments -- fall. Help borrowers save and invest more money. Someone who has a payment that's $100 less with an ARM can save that money and earn more off it in a higher-yielding investment. Offer a cheap way for borrowers who don't plan on living in one place for very long to
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Written Analysis - Analysis of an ARM vs. Fixed Rate...

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