Adjustable-Rate Mortgages
Adjustable-Rate Mortgages (ARMs), are loans that have interest rates that adjust over time. ARMs usually start off with a fixed rate for a specified number of years (usually 3, 5, 7, or 10 yrs.) After the set time the interest rate is adjusted once per year depending on the loan terms. There are generally limits of how far up or down the interest rate can change. ARMs are some of the best loans to those planning on owning their home for a short period of time.
Primary Benefits
ARM interest rates are usually lower than 30-year fixed rates.
They can reduce your monthly payments significantly.
Greater savings are achieved if interest rates decline.
Caps on ARMs offer extra protection against volatile market conditions.
ARMs are ideal if you plan to own your home for less than 5 years.
An adjustable rate mortgage loan may be right for you. If you have any questions, give us a call or open a chat to see if you qualify today!