A 5/1 adjustable rate mortgage (ARM) or 5-year ARM is a mortgage loan where “5” is the number of years your initial interest rate will stay fixed. The “1” represents how often your interest rate will adjust after the initial five-year period ends. The most common fixed periods are 3, 5, 7, and 10 years and “1,” is the most common adjustment period. It’s important to carefully read the contract and ask questions if you’re considering an ARM.
Congratulations on closing your mortgage! You’ve completed one of the most significant financial transactions of your life. However, the journey doesn’t end at the closing table. Here’s what you can expect after closing on your mortgage: 1. Receiving Your Closing Documents After closing, you will receive a stack of important documents, including: Promissory Note: Your...
In the United States, the interest paid on a mortgage for a primary residence or a second home is generally tax-deductible. This is known as the mortgage interest deduction. Let’s explore the key points about this valuable tax benefit and how you can calculate your savings. In the United States, the interest paid on a...
When your loan officer informs you that your mortgage loan is “disclosed” and you need to sign it, the lender has prepared and provided you with the initial loan disclosure documents. These documents outline the terms, conditions, costs, and other crucial details of your mortgage loan. Signing these documents is a vital step in the...
