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Refinancing with an ARM allows you to save on each payment, leaving you with extra cash each month.
Our low interest rate ARMS will make you happy.
With hundreds of programs to choose from, we can find one that is perfect for you.
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There are lots of reasons to refinance today
Say hello to ARMs.
One of the biggest reasons to refinance is to switch from a fixed-rate loan to an adjustable-rate loan. We believe that a lot of homeowners would benefit from switching to what is called "fixed-period ARMs," also known as hybrid ARMs. These adjustable-rate loans have a fixed rate for a specified period, and then adjust annually thereafter. One with an initial rate that lasts three years, then adjusts annually, is called a 3/1 ARM. The rate on that initial period is lower than the rate for a 15-year or 30-year fixed-rate loan, so borrowers save money.
Here is a hypothetical example of a homeowner who refinanced in 2005 to a 30-year fixed-rate loan. They don't have any intention to stay in their house another 28 years and they called First Equity to ask about an ARM with the first five years fixed. Suddenly she realize that, 'Gosh, I can save a lot of money by refinancing and going to a fixed-period ARM.
Our loan officers and other bankers say that a homeowner who plans to move up to another home in three or four years can save a lot of money with little risk by refinancing from fixed-rate loans to 3/1 ARMs, whose initial rates are often about 2 percentage points lower than the rates for 30-year fixed loans. Homeowners who plan to move in five or six years would benefit from switching to 5/1 ARMs, whose initial fixed-rate period lasts five years.
A recent client called a First Equity loan officer and said he had refinanced 10 months ago from a 30-year fixed loan to a 15-year fixed. He got a lower rate and, although the monthly payment went up $100, he was on schedule to pay off the loan in half the time. The client said that his wife is pregnant now, and they really miss that $100 a month. After talking with his First Equity loan officer, they plan to get a 3/1 or 5/1 ARM to be repaid over 30 years, and they will reduce their monthly payment well over $100 per month.
Is it time for me to refinance?
See if refinancing is right for you. Most refinancing can be completed in as little as two weeks and we do all of the work. Call your First Equity loan officer today toll free at (877) 356-8887 or click here for a two minute information application for a free consultation and see just how much money you could be saving next month.
For residential mortgage loans, we can compare rates with at least four lenders for you. Many borrowers tell us that they enjoy using our VIP Borrower Program. It allows you to apply online and lets our VIP Team do the loan search for you. Take the hassle out of searching for the best mortgage loan - complete one application with us and our VIP Team will do all of the work. One person contacting you, no worry about phone calls all hours of the day and night, and the security of knowing your information is not being sent to multiple brokers around the world.
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