The 15/15 ARM Jumbo Loan: You May Be Able to Afford a Bigger Home
Looking For A Larger Home?
For many homebuyers, lower monthly payments offer the opportunity to afford a bigger home. Adjustable rate mortgages like the 15/15 ARM Jumbo Loan typically offer a lower initial interest rate than other 30-year fixed rate loans. This lower interest rate results in lower monthly payments.
What does this mean?
The same house financed with a 15/15 ARM results in lower monthly payments within the first 15 years than the same home financed with a 30 year jumbo fixed mortgage.
If you are planning to move within the next 15 years, this might be the best product for you.
Once you know how much money you’re qualified to borrow, it’s worth it to look at the difference a 15/15 ARM Jumbo Loan could make. You could be able to afford a much bigger home.
The jumbo part of the loan means that your total mortgage is for more than $424,100 (in most counties) and is typically used for larger, single-family homes.
As with any ARM, the rate will remain the same for the first period (15 years) and then adjust, unless you have paid off or refinanced the loan by the time the initial payment period ends.
And as with any ARM, there is always the risk that interest rates will have gone up by the time the period ends. But with careful planning, you can afford a bigger home and still end up staying within your budget.