Fixed vs ARMs

The basic qualifications for fixed versus adjustable are all the same, except on adjustable, we have to qualify you on a fully amortized rate - sort of figure kinda like "the worst the rate can be". Sometimes this makes qualifying harder than a fixed rate. But this is easy today... Adjustable rate loans have zero value in today's market as the rates are either higher than a fixed rate, or are so close to a fixed rate that there is no benefit to getting an adjustable. This is not always the case, but it is today. I lend in MN Wi IA SD ND. Find me at MNBestRates,com - Vambria Mortgage, NMLS 274132

In times past, the interest rate you paid with an adjustable rate mortgage was lower than a fixed rate mortgage. The trade off was that you were accepting the risk of higher rates than the Lender. Though it is still true that you are accepting the risks of higher interest rates in the future, you don't now see the benefit of a lower rate now. This is an aberration in today's market caused by the Fed tightening monetary policy by raising the Fed Funds rate to highs not seen for 40 years.There are also "Hybrid" ARMs where the interest rate is fixed for some initial period, typically 5 or 7 years. After which time they adjust monthly, semi-annually or annually. However, you will still not enjoy a better rate than with a 30 year fixed rate mortgage.To qualify for a fixed rate mortgage or a hybrid ARM, the sum of all of your monthly debtpayments including the new house payments should be less than 43% of your monthly gross income. The housing payment component of that sum must include the principle and interest, as well as real estate taxe and homeoners insurance escrows, mortgage insurance (if required), HOA dues (if any) and ever Flood insurance (if in a flood hazard area....and there are several in Boulder.My office is in Boulder and I serve ColoradoJim CrowderCrowder Mortgage Inc. (303)817-3308 mobileNMLS # 264780. Jim@crowder.comCO MLO #100009863. Www.crowder.com