After running neck-and-neck for several months, interest rates for fixed-rate mortgages and adjustable-rate mortgages are finally diverging.

Despite pricing worse than its fixed-rate counterpart throughout much of August and September, ARMs are now close to 0.375 percent lower for conforming products sold through Fannie Mae and Freddie Mac.

This equates to roughly $25 per month per $100,000 borrowed.

If you know that you don’t need a 30-year rate commitment from your lender, you may find that a well-structured ARM is a real money-saver.

Related posts:

• Conforming Fixed Rate Mortgages Are Now Priced Better Than Comparable ARMs
• Choosing A 15-Year Fixed Rate Mortgage Over A 30-Year Fixed Rate Mortgage
• It’s A Good Time To Look At Adjustable-Rate Mortgages
• It’s A Good Time To Look At Adjustable Rate Mortgages
• Adjustable-Rate Mortgages Are A Relative Bargain Today

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