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Fixed Adjustable Rate Mortgage (ARM)
Adjustable-rate mortgages are just that–adjustable. They tend to have lower initial interest rates than fixed rate mortgages. After an introductory period, their rates may fluctuate according to market conditions. ARM loans are an ideal strategy if you don’t plan on keeping a loan for its full term or if you would like to benefit from lower payments at the beginning of the mortgage.
The initial rate for an ARM is fixed for an introductory period of one month to ten years. After that, the rate adjusts periodically depending on the type of ARM and based on a market index plus a set margin, but won't go above a predetermined adjustment cap.
ARMs can be a good way to refinance when current rates are higher than you would like to commit, long term.
Learn More
– Get pre-approved!
– Should I consolidate my debt?
– What is a bad credit home loan?
– Buying and owning a home
– How much of a home loan can I qualify for?
– How much would I save by using an adjustable rate? Is it worth it?
– How much can I save in taxes?
– What will my monthly payment be?
– Should I rent or buy my home?
