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Article: Adjustable Rate Mortgages Just Right for Some.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- November 7, 1999
- Author:
CopyrightCOPYRIGHT 1999 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Knight Ridder/Tribune Business News
Nov. 5 -- Paula Pearson wanted to pay as little as possible on her home mortgage after a divorce.
The Draper resident selected an adjustable rate mortgage to accomplish that goal. The interest on her new home loan starts at 6.25 percent, rises to 7.25 percent at the end of next year and tops out at 8.25 percent in 2001.
"I'll make more money each year and that will help compensate for the higher payments," Pearson said.
Adjustable-rate loans are not for everyone. But as rates for 30-year, fixed-rate mortgages have crept toward 8 percent, more people are considering them.
Such loans may make ...