In this post, I want to share why an adjustable rate mortgage is better than a 30-year fixed-rate mortgage. I’ve been taking out an adjustable-rate mortgage since 2005. I will continue to do so because they are more efficient.
If you haven’t been paying attention, thanks to pandemic fears, the 30-year bond yield and the 10-year bond yield have reached all-time lows. And when Treasury bond yields hit all-time lows, mortgage rates follow suit.
In a strange way, I wish I still had a mortgage to refinance. In mid-2019, I locked in a 2.625% 7/1 ARM for no cost. If I could refinance the mortgage today, I probably could get at least 2.375% for no cost. Oh well.
For those of you smartly looking to refinance, do a cash-out refinance, or purchase a new property, I’m here to argue why an Adjustable-Rate Mortgage is better than a 30-year fixed-rate mortgage (FRM).