Are you considering an adjustable rate mortgage because of the lower interest rate and lower monthly payment? What is an adjustable rate mortgage? How do arm loans work? What are the pros and cons of using an adjustable rate loan? In this video, we discuss why arm loans are becoming more popular in today’s housing market and when it may make sense for you to consider using an adjustable rate home loan.
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Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Coldwell Banker Realty
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#mortgage #housing #realestate
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27 Comments
@scroogejones6391 · October 29, 2026 at 8:05 pm
"You should understand how ARMs work"
Proceeds to not really explain how ARMs work
@homersaraos6438 · October 29, 2026 at 8:05 pm
Hey, thank you for being honest about the risk of arms mortgage rate.
@AvatarAang926 · October 29, 2026 at 8:05 pm
are there any cons or things to worry about when refinancing? I can refinance any time, right?
@joshuehernandez9514 · October 29, 2026 at 8:05 pm
Does this mean that I can get a 7/1 arm if I plan to pay the total of the house in 5-7 years and keep the same interest rate?
@myrathompson7398 · October 29, 2026 at 8:05 pm
I know that arm mortgage was 1300; dollars on his arm mortgage then it doubled too 2600 dollars. I just say never get a armed unless you know you are moving.
@lixiang7349 · October 29, 2026 at 8:05 pm
Dude, your head is giant
@Timk0810 · October 29, 2026 at 8:05 pm
Does a 5 year ARM have a higher rate than a 3 year? same for 10 versus 3, 5 or 7? Why wouldn't someone take a 10yr ARM versus a 3? I'm being offered a 3.1 ARM, wondering if I can bargain for a 5 or even 10 year instead and keep my monthly mortgage the same.
Another thought. Say I take a 3.1 ARM at 5%, in three years the 30yr fixed is now 6% so my ARM goes up to 6%. No harm no foul. The rates go up, my rate goes up. I guess if I initially took a 7% 30yr fixed rate loan and after 3 years, the interest rate is now at 8%, I'm locked into the lower rate. Point goes to the fixed rate. But for all scenarios where rates go down, you can refinance the ARM as well as the fixed, correct? Can I turn an ARM into a fixed?
@AT-cm5nu · October 29, 2026 at 8:05 pm
Question, If I want to purchase apartment for $350k, and I'm willing to do 50% down payment .. and eventually pay it off in another 2-4 years. What is my best options ? If I have 15/30 years fixed loans, can I pay the main amount after 2-4 years, or there is limitation and restrictions?
@magicmike1122 · October 29, 2026 at 8:05 pm
I just want to know, if I do an 7-1 ARM, after 7 years, if interest rates are 20%, will my interest rate go from 6.5% to 20%?? If so, that sounds stupid
@IBleedBolts · October 29, 2026 at 8:05 pm
Under today's super high interest rates, there will be a percentage of homeowners who will find themselves screwed because they have to eat the higher interest rate, which is probably lower than current refinance rates. Good luck finding thousands of dollars more to pay the mortgage payment per month.
@100mil_Emily · October 29, 2026 at 8:05 pm
Great info. Thank you!
@angelcuriel19 · October 29, 2026 at 8:05 pm
Can you change arm loans to fixed mortgage
@chaits99sehgal · October 29, 2026 at 8:05 pm
What exactly you mean by 7 year fixed or 5 years fixed? Suppose I go for 7/1 arm at 5.5% currently, and then the rate dropped to 4.5% within next 3 years, Can I refinance or I need to wait for 7 years?
@jabbaweezy · October 29, 2026 at 8:05 pm
I need Jim Carrey in Yes Man as my loan officer to hook it up with something better then since ARMs aren't for me.
@arctheambassador · October 29, 2026 at 8:05 pm
I need help?
I can do a 30 year fixed at 5.20% with 1.3 points or a 10/6 arm at 5.20 with no points. I was told to go with arm because I'm going refinance again once rates hit low 4s the arm allows me too keep my heloc but the 30 year requires me to payoff my heloc? I'm stuck on what I should do?
@EatYourOwnBacon · October 29, 2026 at 8:05 pm
We’re going through the process right now. I can get a 7% interest rate for 30 or a 10/1 at 5.5% and risk being able to refinance in 9 years.
I’ll 100% take that risk to be able to pay down my loan.
1 after 9 years my loan will be principle about 200k lower, meaning even if my interest shoots up 5% that will be on much less money than the initial was.
It’s been 6 months since this video was posted, and people in this comment section said the market would crash by now.
Home prices are still high. What happened to the crash smart guys?
@champion397 · October 29, 2026 at 8:05 pm
I wouldn't take an arm when the home prices are going to drop. I think that's a good way to be upside down. I'd just wait it out to the market stabilize. House have a ton of equity in them so homes will drop at least 15% so make it make sense!!!!
@JayJay-me8zk · October 29, 2026 at 8:05 pm
Great video. Simple enough that even I could understand it. Thanks!
Got yourself a new subscriber!!!!
@orvillebryan1950 · October 29, 2026 at 8:05 pm
conventional and Arms carry the same risk today , 1) if you lose your something bad happen you will lose your home 2) Arms , ten Arms same thing if you can't refinance into conventional loan. if were to do Arms i would do 10yrs Arms and refinance out in year 8 to 9 ,Biden will be out office even before that and rates must get better.
@fbaalltheway · October 29, 2026 at 8:05 pm
As a licensed MLO, who has originated numerous ARM's I will add a few things..
1: You did not once mention "caps" on the loan (initial cap, periodic cap, and lifetime cap) these ensure your interest rate does not exceed more than a certain percentage beyond your starting interest rate. Caps were a safeguard put into place AFTER 2008 to protect homeowner's from payment shock.
2. After your fixed period, whether that be 5 years, 7 years or 10 years; your loan re-amortizes based off of your remaining balance so for example, if you start with a loan amount of $500,000 and after your 5 year fixed period you have $400,000 remaining on your loan, your interest rate will be based off of the $400,000 not your original $500,000 loan amount.
3. Lenders are required by law to give the borrower a 6 month notice BEFORE their rate even changes so there is absolutely no surprises.
4. When the borrower qualifies for an ARM, they have to be able to qualify based off of the absolute highest interest rate/payment based off of the caps I mentioned earlier (specifically the lifetime cap). So if the payment does go up, the borrower is still able to make the payment based off of what they initially qualified for.
Other than that, great video, I just feel you left a few important details out.
@MindHorizon2026 · October 29, 2026 at 8:05 pm
Great Content Great Value especially now!!!
@andrewvonaftw · October 29, 2026 at 8:05 pm
I was thinking about getting a 15 year arm. The loan officer said that it's 30 year loan, fixed at 4.75 for the first 15, then can go up 2%, the 16th year, and another the next year, but capped at 5% increase total. Of course 9.75% would be high for the 17th or 18th year, but I also plan to pay the principal down faster by making extra payments in the first 15. Thoughts?
@juicy2fresh · October 29, 2026 at 8:05 pm
Here we go again lol. A realtor "explaining" when ARMs make sense during a housing bubble. Hahaha you can't make this up.
@janetairlines1351 · October 29, 2026 at 8:05 pm
What about if the first 10 years are locked at a low rate?
@wadej769 · October 29, 2026 at 8:05 pm
If you can not buy with a fixed rate you are not ready, regardless of market conditions. Do not gamble your financial future away stick to what you can truly afford 🙏🏻
@johnski4709 · October 29, 2026 at 8:05 pm
Wells Fargo just fired 550 mortgage processors this morning. Clearly they know what’s coming. 🚨
Housing market finance downturn.
@digleman1 · October 29, 2026 at 8:05 pm
do they have a 3/1 ARM?