Tallahassee Real Estate Blog

ARMs were popular mortgages until the housing downturn began.  One of the most popular versions was the 5/1 ARM.  This mortgage remains fixed for the first 5 years, and then adusts every year afterward.  If you obtained a 5/1 ARM in the spring of 2006, your mortgage payment will likely change soon. 

The good news is, for most Tallahassee home owners, your rate may adjust downward.  ARMs are tied to an "index" - one of the most common is the 6-month London Interbank Offering Rate, or LIBOR.  The LIBOR is significantly lower right now than it was back in 2006, so many ARMs may adjust downward.  Of course, this all depends on how your mortgage was written. 

Take out your mortgage document, and turn to the page that says "Adustable Rate Rider."  This will give you the information on your adjustment, including the adjustment date, index, margin, and caps that limit up or down changes.  Your servicing lender should be able to answer any questions.

Still not sure about the ARM on your Tallahassee home?  The Keenan Team will be happy to answer your ARM questions, and provide guidance on where to get solid answers to your mortgage questions.  Give us a call at 850.445.2476.

Terance Keenan