Question by Britta G: Is a 2 year fixed mortgage bad? I can refinance later. Am I locked in for 2 years with no refinancing?
Home, mortgage, 2 year mortgage, home loans, home loan mortgage, mortgage rates
Best answer:
Answer by boston857
Typically, with most ARM’s (adjustable rate mortgages) you will be subjected to a prepay penalty to cover the fixed rate period…..I would find out whether there is a prepay…
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Why do you think there is alot of foreclosures. I would try to get out now and get into a fixed 30 year loan. ARM mortgages are very bad unless you plan to sale after a year of living in it. Trust me GET OUT. Plus the rates on a 30 year is low compare to what the rate are going to be in 2 years from now. I think its at 5.75 percent give it two years and we should be at 7 to 8 percent.