Adjustable Rate Mortgages in Today's Market | #shorts
00:00:00.000 | If I can get a dramatically lower rate off a seven-year arm, they
00:00:02.980 | call it adjustable rate mortgage, a seven or 10 year.
00:00:05.060 | Yeah.
00:00:05.940 | I like that idea.
00:00:06.620 | Here's what I don't like though.
00:00:07.620 | What happened in '07, '08, right?
00:00:09.180 | Is people have these adjustable mortgages for the same reason
00:00:11.620 | like that we're having today.
00:00:12.720 | And so they'd get the arm because it was cheaper.
00:00:15.300 | And then when the market collapsed, the arm shot up to 28%.
00:00:19.140 | So all of a sudden people's mortgages went from a thousand to $5,000.
00:00:22.380 | And they lost their homes.
00:00:23.880 | That has been changed.
00:00:26.620 | There are now limits on what an arm can do.
00:00:28.680 | A lot of people don't realize this.
00:00:29.660 | They think, oh, I would never get an adjustable rate mortgage.
00:00:31.660 | Cause I don't want '08 to happen again.
00:00:33.020 | Well, if you look at the paperwork and talk to your lenders, yeah, most
00:00:35.860 | arms have a max what they can get to.
00:00:37.820 | And it's somewhere in the, like the 11, 12% range.
00:00:39.900 | So I, yeah, could rates stay high forever.
00:00:43.520 | And then your adjustable rate seven years from now goes up to 12%.
00:00:46.260 | That is possible.
00:00:47.300 | That is a risk.
00:00:48.220 | So if you really don't like risk, take a 30 year mortgage.
00:00:50.920 | You can refinance a 30 year mortgage too.
00:00:52.500 | But if you want to lower your interest rate and take a little gamble,
00:00:55.620 | that's what I typically do.
00:00:57.340 | Yeah.