A LIBOR ARM may be for you if you:
• are seeking to lower your interest rate and monthly cash flow.
• are looking to minimize your monthly payment.
• want to take advantage of the equity in your house. This is a good refinance program for those who want to consolidate consumer debt such as credit cards.
Any ARM is a good idea if:
• ARM interest levels are significantly below fixed-rate interest charges.
• you anticipate a higher income in the future.
• you won’t be staying in the house for more than five years (especially if you have a locked-in rate for the first three, five or seven years).
ARMs are NOT a good idea if:
• high closing costs offset the low interest rate.
• initial rates are comparable to fixed-rate loan rates.
