ATLANTA — The number of homeowners seeking to refinance their homes has surged by 60% from last week, according to the Mortgage Bankers Association.
Channel 2 consumer investigative reporter Justin Gray spoke to Joel Larsgaard, from the ‘How to Money’ podcast, to see how adjustable-rate mortgages have shifted in recent years.
In addition to the rise in refinancing, data shows applications for ARMs have reached their highest level since 2008.
ARMs now account for 12.9% of all mortgage applications, reflecting a significant shift in borrower preferences.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
TRENDING STORIES:
- Atlanta woman indicted for using fake dental hygienist license
- Secoriea Turner’s mother testifies in murder trial
- Woman leads deputies to chop shop. Now, 3 are headed to prison for drug trafficking
“The amount of time you plan to live in the house and how much money you will save with the lower rate are key factors in deciding if this type of loan is right for you,” Larsgaard told Channel 2 Action News.
Adjustable-rate mortgages typically offer an initial fixed rate for five, seven, or ten years before the interest rate changes. This structure can be appealing to borrowers who plan to move or refinance before the rate adjusts.
Larsgaard also said it was important to compare offers from at least three mortgage companies to secure the best loan terms.
He noted that if the savings from an ARM are not substantial, a 30-year fixed-rate mortgage might be a better option to avoid future rate increases.
As more borrowers consider adjustable-rate mortgages, the housing market may see shifts in lending patterns, influenced by the potential for lower initial payments.
However, experts say homebuyers should careful consideration of long-term financial goals when choosing between loan types.
[SIGN UP: WSB-TV Daily Headlines Newsletter]
©2025 Cox Media Group
