5-year arm
Mortgage Rates: 5-Year ARM Cuts $10,000 in Interest
Sub-prime first-time buyers with credit scores between 580 and 640 typically face mortgage rates about 1.3 percentage points higher than prime borrowers, making monthly payments roughly $200 higher on a $200,000 loan. This premium reflects lenders’ added risk and can double closing-cost estimates over a decade. Understanding how