I got an Adjustable Rate Mortage (ARM) on my house a year ago. Did I screw up?

If you don't plan to be in the home longer than the fixed period of the ARM, than you did not. If you plan to be there longer, you can always refinance it into a fixed rate loan before the adjustable feature goes into effect.

No you did not make a bad choice in picking an ARM. Depending on the length of your ARM you can always decide to switch to a 30yr fixed if you plan on staying in the home past the time your ARM expires. We are located in Tumwater WA so if you have any other questions we are local and would love to help go over any questions or concerns. Thanks Jake O'Leary AmericaHomeKey,Inc - 360-915-9609

No, you did not. The loan most likely does not have a prepayment penalty so if you reall are concerned about the rate adjusting you can refiiance into a thiry year fixed rate loan. However, if you plan on staying in your home for only 5 - 7 years did I believe you made the correct choice in choosing an adjustable rate loan. Remember you can always take some of the savings from the lower mortgage payment and have it applied directly to your principal balance each month and get your balance paid down faster.

also you need to see when the loan with adjust . Is it a 3 yr, 5 yr , 7 yr? and what type of adjustment. Your can look at your security note, and it will explain most of the adjustments to you..

There is not much to fear in today's world of ARM's. 5 yr and 7 yr rates are very competative and you have the ability to refinance into a 30 year note if you feel you will be there longer. The key variable is to start to look at potential changes 12 months before your rate is going to adjust so that you can then look at either staying with your current mortgage because the rate is going to go down when it adjusts or refinance into a new ARM. Over the past few years, ARM customers have seen rates go lower. Also government ARMs are a great deal because the cap is 1%.