08.29.2023 - By James Conole, CFP®
Are short-term savings using an adjustable rate mortgage worth the risk of rate hikes? In this podcast, we cover how adjustable rate mortgages (ARMs) work, how they differ from fixed-rate mortgages, and the reality of their adjustment periods.
James uses a real-life scenario to dive into the comparison of adjustable and fixed-rate mortgages. Learn how to plan for the worst-case scenarios and evaluate the benefits and drawbacks of each option.
Questions answered:
Is it better to get a fixed rate mortgage, or is it better to get an adjustable rate mortgage?
What is the risk versus reward?
Timestamps:
0:00 Intro
3:10 Buying a home
5:18 How ARMs work
7:24 Why use an ARM?
10:11 What's the risk?
14:07 When not to get an ARM
16:15 When to get an ARM
18:50 Other considerations
20:21 Analysis
21:06 Outro Create Your Custom Strategy ⬇️
Get Started Here.