OurBroker Logo
Have A Consumer Real Estate Question?  Please Press Here.
How does an ARM conversion program work? : Refinance, Home Mortgage Loans & Rates, Home Equity Loan

How does an ARM conversion program work?

feature photo

Many ARMs come with conversion programs. For a fee, say $250 to $500, you can convert to a fixed-rate. The conversion rate won’t be the best in the world, it’s typically about 5/8ths of a point higher than a given index, but it may be better than the fixed rate at the time you applied for financing — or fixed rates in the future if rates rise.

The attraction of conversion programs is that they represent a cheap form of refinancing. There’s no settlement involved because the loan has already been recorded. Without a new settlement, a host of fees, charges, and taxes can be avoided. In effect, a conversion program is really a form of loan modification.

Share and Enjoy:
  • Facebook
  • MySpace
  • StumbleUpon
  • Technorati
  • Reddit
  • Digg
  • del.icio.us
  • LinkedIn
  • Yahoo! Bookmarks
  • Google Bookmarks
  • Yahoo! Buzz
  • MSN Reporter

Post to Twitter

Technorati Tags: ARM, conversion, fee, fixed, mortgage



Have a real estate question for newspaper readers nationwide? Financing? Buying? Selling? Foreclosures? Press here to ask your question.

Copyright 2008 Peter G. Miller. All Rights Reserved. Reproduction of this material
online or off without express written permission is illegal,
however direct links to this page are welcome.
 

Print This Post Print This Post


Related Links

Post a Response