I saw these latest mortgage rates posted by Bankrate.com. By the way, apparently the mortgage rates for the most common mortgage term, the 30 year mortgage, are currently dropping, but there’s no telling when they may rise again.
Current Mortgage Rates
30 yr fixed mtg 6.31%
15 yr fixed mtg 6.02%
30 yr fixed jumbo mtg 6.49%
5/1 ARM 5.96%
5/1 jumbo ARM 6.07%
This prompted me to look further into what an “ARM” mortgage loan is. An ARM mortgage loan is an Adjustable Rate Mortgage where the lender has the option to charge the mortgagee (borrower) an adjustable rate.
The people I’ve asked about this say the you should always go for a fixed rate mortgage whenever possible, this way your interest rate on the mortgage stays the same and you’re not worrying about the rate charged changing all of the time.