what is better for your adjustable rate mortgage to be based on 6 month libor or 1 year?
by Mortgage Rates on Friday, October 1st, 2010 | 2 Comments
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From a personal finance point of view, I would prefer the one year adjustment so I could plan for a year in advance and know if I could afford to buy the T.V. or have to wait just in case the mortgage goes up.
Personally, I would never take out an adjustable rate mortgage. All that I have seen went up rapidly, but came down slowly.
WHY choose an ARM rather than a fixed rate when rates are so low now? You don’t have certainty about your payments at all. See if you can do a loan modification to change from ARM to fixed loan!