Should I Get an ARM? Great bad credit home loan option
An ARM could be the perfect solution for you if your looking for a bad credit home loan. Why? Basically, they buy you time. ARMs give bad credit home loan candidates time to repair their credit and hopefully refinance into a solid 30 year fixed before the loan resets. During the fixed portion of the ARM whether it's 3, 5 or 7 years, the interest rate is much lower than the typical 30 year fixed rate. This strategy takes discipine but will work if you plan ahead. Pay all your bills without missing any payments for 2-3 years and watch your credit score shoot up 100 points!
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ARM - 3/1 and 5/1 Explained
Should I get an ARM?