When individuals come into Creekside Mortgage, Inc. looking to refinance their VA loan or get an IRRRL (Interest Rate Reduction Refinance Loan), many times, they are trying to refinance out of an ARM (Adjustable Rate Mortgage).
These individuals were originally placed into loan programs where they were given super low interest rates, but for only a matter of time. Then, the rate could go up—drastically.
Here at Creekside Mortgage, Inc., we don’t believe in doing ARMs unless the client fits into one of the following categories:
- They are only going to be in the home for a short period of time and they will be selling the house or otherwise getting rid of the mortgage before the rate has a chance to rise.
- The individual is facing a rate that is so bad that they take the chance of getting a lower interest rate in the short term and hope to refinance the loan before the rate rises.
However, in approximately the last five years, the situations outlined above haven’t occurred due to low interest rates.
So, today, there is little to no need for our clients to be utilizing an ARM mortgage and that means that we stay away from putting our clients into ARMS. By getting a 30-year-fixed mortgage, our clients can rest assured that their interest rates will never change for the life of the loan.
Call Creekside Mortgage, Inc. at 360.571.5626 or toll-free at 800.920.5420 today if you are have any questions or would like to get out of your ARM.