If you have an adjustable-rate mortgage (ARM), you may be feeling anxious about rising mortgage rates. As the interest rate on your ARM fluctuates with the market, your monthly payment could increase significantly, putting a strain on your budget. However, you do have options to protect yourself and your financial future. In this blog post, we’ll discuss the benefits of selling for a cash offer and other options to consider in a rising mortgage rate market.

So what do rising mortgage rates mean for my loan?

An ARM typically has a fixed interest rate for a set period, usually 5 to 10 years, and then adjusts annually based on market conditions. When interest rates rise, so does the interest rate on your ARM, which means your monthly payment will also increase. Depending on how high the interest rate goes, your monthly payment could become unaffordable, leaving you struggling to keep up with your mortgage payments.

What are my options for rising mortgage rates?

Option 1: Refinance

One option to protect yourself from rising mortgage rates is to refinance your ARM into a fixed-rate mortgage. A fixed-rate mortgage offers the security of a consistent interest rate and monthly payment, which can provide peace of mind in a rising rate market. However, the downside of refinancing is that it can be a lengthy and costly process. You may need to pay closing costs, and if your credit score or debt-to-income ratio has changed since you first obtained your ARM, qualifying for the lower rates will be tougher. And since interest rates are rising, you’re probably going to have a higher interest rate and payment than you did originally.

Option 2: Traditional Sale

Another option to consider in a rising mortgage rate market is to sell your home traditionally through a real estate agent. This is the tried and true method, but it has some downsides. Firstly, selling traditionally can be a time-consuming process. You’ll need to prepare your home for showings, keep it clean and tidy, and be available for open houses and private showings. The longer your home is on the market, the more you’ll have to continue making mortgage payments, which can add up quickly in a rising interest rate environment.

Secondly, selling traditionally can come with high transaction costs. Real estate agents typically charge a commission of around 6% of the selling price, which can eat into your profits. Additionally, you’ll need to cover closing costs, such as title insurance, appraisals, and inspections, which can add up to thousands of dollars.

Lastly, in a rising interest rate market, it can be challenging to find a buyer who is willing and able to pay your asking price. As interest rates increase, the cost of borrowing money also increases, which can make it more challenging for potential buyers to qualify for a mortgage. This can lead to longer selling times, lower offers, and even a failed sale.

Option 3: Sell to a Cash Buyer

Another option is to sell your home for a cash offer. When you sell your home for cash, you don’t have to worry about the uncertainty of the housing market or the rising interest rates. Cash buyers can close quickly and offer a hassle-free transaction, which can be especially appealing if you’re facing financial difficulties or need to relocate quickly. Additionally, selling for cash means you don’t have to worry about preparing your home for showings or dealing with the stress of negotiating with potential buyers.

Selling your home for cash can also provide financial flexibility. If you have equity in your home, selling for cash can allow you to pocket the proceeds and use the money to pay off debts, invest in a new home, or fund other financial goals. 

Make your home sale easy with us!


Selling your property for cash isn’t for everyone. However, if you’re looking for an option that avoids a lengthy traditional sale with high transaction costs, compounded with the challenge of finding a buyer in a rising interest rate market, it could be a great option for you.  Selling your home for a cash offer can provide a quick and hassle-free transaction, allowing you to avoid the uncertainty of the housing market and rising interest rates. DM me today for a no-obligation offer and put your worries to rest!