ARM vs. Fixed Rate Mortgage

Low mortgage rates today may have you wondering if you should refinance your ARM (adjustable rate mortgage) to a fixed rate (conventional) mortgage.  There is no better time than now to ask that question.  We know that, at some point, mortgage rates will rise, we just don’t know when.  A rising rate will affect your adjustable rate mortgage by increasing the interest rate you pay going forward.  Here are a couple items that you should discuss with your Nicolet National Bank mortgage lender to determine if refinancing to a fixed rate mortgage is going to benefit you:

1.  How long do you plan on living in your current home?

If you are planning on staying in your home for the foreseeable future, it can be a big cost savings to refinance to a fixed rate mortgage now, rather than waiting until the interest rate on your ARM adjusts to a higher rate.

2.  What is the rate on your ARM compared to the current rate for a fixed rate mortgage?

Knowing that your interest rate is locked in for 10, 15, 20, or 30 years can give you peace of mind.  When interest rates rise, yours is locked in at today’s historically low rates – saving you a lot of money in interest over the life of your loan.

By comparing the rate on your current ARM to a fixed rate mortgage and pairing that with how long you plan to be in the home, you will have a good picture of the best option to take.  Call any other Nicolet National Bank Lender to help you determine if converting your mortgage is the best option for you today.

Post a Comment

Your email is kept private. Required fields are marked *


Scam Alert: Uber Data Breach

Wednesday, January 10, 2018

SCAM ALERT: Uber suffered a data breach a year ago, and the address and email information of 57 million people were stolen. Uber paid off the hackers who then reportedly deleted the data, but that cannot be confirmed. Watch out for phishing emails related to this Uber data theft, for instance that your “Uber account [...]

Nicolet National Bank’s Personal Bankers Focus on Customer Needs

Wednesday, January 10, 2018

Simplifying Processes Gives Nicolet Bank a Hometown Feel Nicolet National Bank’s personal bankers provide the link between good, old-fashioned hometown banking and the array of products and technological services available in today’s financial world. It is this focus on individualized service that creates long-lasting relationships between personal bankers and their customers. “We believe exceptional customer [...]


Business Pulse - Cybersecurity has emerged as a major issue for CEOs

Monday, July 27, 2015

CEOs Express Concern about the Cybersecurity of their Business. Read the full report here. Business Pulse – JUNE 2015 EXECUTIVE SUMMARY CYBERSECURITY  

Nicolet Bankshares, Inc. 2nd Quarter 2015 Earnings Release

Tuesday, July 21, 2015

Nicolet Bankshares, Inc. (OTCQB: NCBS) earnings release for 2nd quarter 2015. 2Q15 Earnings Release

How to Ensure a Good Credit Score

Wednesday, July 8, 2015

First, let’s understand how your credit score is determined. Your credit score is broken down into five categories weighted accordingly: Payment history = 35% Total amount owed = 30% Length of credit history = 15% New credit = 10% Type of credit in use = 10% MAKE YOUR PAYMENTS ON TIME. This is the most [...]


Font Size