ARM = adjustable rate mortgage = your mortgage starts with a low (teaser) rate (1-4%)and then readjusts to the real world situation. So when will they reset?
Inflation caused interest rates to go up and those ARM's will be adjusting upward, many people will see their mortgage payment +30%, + 50%, +70%.
6 month graph 30 year fixed rate
6 month graph 30 y fixed (jumbo loans, loans above $417 000)
6 month 3/1 ARM (a fixed rate for 3 years, an adjustable rate for the next 27 years)
NOT a good time to buy.
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