Monthly news & updates

July 2022 | Volume IX, Issue 7

Cure Housing Market Imbalances with an Adjustable Rate Mortgage

Real estate prices continue to be supported by an imbalance among purchase demand and inventory. While fixed-rate mortgages are on the rise, an adjustable-rate mortgage continues to make purchasing a home affordable.

Adjustable rates are quickly becoming more popular. According to the Mortgage Bankers Association, over 10% of all purchase applications now feature adjustable rates. An ARM's initial lower rate can save you money in a higher price, higher-rate environment.


You know you won't be in the home for long. Adjustable-rate mortgages start with a fixed-rate term, usually up to seven years. If you’re confident you will want to sell the home during that first loan term, you stand to gain from the lower initial interest rates of an ARM. Maybe you’re planning to move to a different city in a few years, or you know you want to start a family and you’ll need to find a bigger place.


You’ve budgeted for a possible interest-rate hike. An ARM has a rate cap that can prevent your rates from increasing too much or too quickly. A mortgage calculator can help you figure out your maximum monthly payments.


An ARM lets you enjoy significant savings with the right financial situation and good planning. Turn to the experts at National Iron Bank to determine the mortgage that best fits your needs. Click here to learn more!


Excerpts from Mortgage News Daily and Smart Asset

National Iron Bank | IronBank.com

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