FACT: With substantial increases in the 1-Year LIBOR and Treasury and Prime rate, almost all ARM interest rates will rise in 2018.
FACT: FIXED jumbo mortgage rates are now at all-time lows. With rising interest rates and increasing indices that determine jumbo ARM rates, NOW is the time to lock in a low fixed jumbo mortgage rate.
FACT: When your interest rate increases on your ARM loan, your payment will increase too.
FACT: Over 80% of all jumbo loans are Adjustable Rate Mortgages.
FACT: Most jumbo Adjustable Rate Mortgages interest rates are calculated by using one of these three indices:
1. Prime Rate - The Prime Rate was 3.75% at the end of 2016. It is now 4.50%. It is forecasted to be 5.25% by the end of 2018.
2. 1-Year Treasury Rate - The 1-Year Treasury rate was .85% at the end of 2016. It is now 2.01% and on the rise.
3. 1-Year LIBOR Rate - The 1-Year LIBOR rate was 1.26% in June of 2016. It is now 2.398% (almost double).
ALL THREE of these indices had some of their largest increases in 2017. ALL THREE will continue to rise in 2018. This means higher jumbo mortgage rates for you.
Need a refresher course on the Adjustable Rate Mortgages? Click HERE to find out more.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1471987
68 Olive Street, Suite 11
Chagrin Falls, Ohio 44022
Phone: (216) 373-6600