Convertible ARMs Information
Adjustable-rate mortgages sometimes come with an additional option to convert over to a fixed-rate mortgage within a certain time period, usually that is before the first five years. This is a great option to exercise if you see that the interest rates are on the rise and your initial period is closer than farther. However, interest rates are going to go up and down throughout the years, so sitting through the higher time period may be worth it because it will eventually lower. Though there are always exceptions and maybe a fixed-rate mortgage is something that you want instead to ensure a consistent monthly payment so that you can plan your finances accordingly. This conversion usually requires a fee and minimal paperwork, but the rate is automatically going to be higher than the market rate because of the “conversion” as opposed to starting with a fixed-rate mortgage. Visit Portland Mortgage Rates for mortgage tips and videos.
