Is your mortgage scheduled to adjust this season? You may want to let it.
Adjustable-rate mortgages are a relative bargain as compared to fixed-ones.
The interest rate differential between fixed-rate and adjustable-rate mortgages continues to widen and has now reached historic levels. There's never been a better time to lock an ARM.
If you have an adjustable-rate mortgage that's due to reset this season, don't rush to refinance. For at least one more year, you can benefit from low rates and low payments. As for the next adjustment, though, that's anyone's guess.
The interest rate gap between fixed-rate mortgages and adjustable-rate mortgages is growing. It peaked 2 weeks ago, but remains huge at 1.16 percentage points.
Currently, relative to fixed rate mortgages, ARM pricing is excellent. Freddie Mac's weekly Primary Mortgage Market Survey puts the 5-year ARM mortgage rate lower than the 30-year fixed rate mortgage rate by 1.02 percent.