This Month's Topic:

"Want to pay off your mortgage sooner?  Why not look at an ARM loan?."

Did he just say ARM loan?  Run!  Hide!  No doubt, Adjustable Rate Mortgages (ARMs) have gotten a bad rap lately.  Many of the sub-prime mortgages that caused the mortgage market collapse were ARM loans, so we have been conditioned to view these loans as the "evil step-mother".

But in reality, an ARM loan can be the best tool to help you pay off your mortgage quicker.  Properly utilizing the lower interest rates that come with these loans will help you achieve the utlimate in financial freedom....YOUR HOME PAID IN FULL!

If you are currently paying extra on your mortgage each month and are on pace to pay off your mortgage quicker than amortized, using the lower ARM interest rate can lessen the amount of interest you pay and excellerate the principal balance reduction.

A 7/1 ARM with a 2.875% start rate means you get that rate for the first SEVEN years of the loan.  Making larger prinicpal and interest payments during this time will mean much more $$$ will go towards the principal balance and less towards interest (because of the lower rate).  The next month, even less interest will be charged to you because the principal balance is lower, so your balance will reduce even more and so on....all this through the magic of "compounding" (it's not just for savings, it works the same on loans).

Want to know if an ARM works for you?  Call us today and we show the numbers and ways to pay off your home sooner.

At American Nationwide Mortgage advice is always FREE.  Call us today.

440-247-5656