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Mortgage Refinance
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Adjustable Rate Mortgage (ARM)
Adjustable-rate mortgages, or ARMs, are just that – adjustable. In exchange for a lower rate than you would get with a fixed rate mortgage, you agree to a rate that fluctuates with market conditions. Historically, an adjustable rate will offer lower payments over the life of your loan. However, there have been periods of time where adjustable rates rose significantly.
ARMs are an ideal tool to address this issue. Do you move a lot with work? Are you planning on retiring and moving to another state in a few years? If so, you can benefit from a low adjustable rate without worrying as much about the long term fluctuations of the market.
The initial rate for an ARM is fixed for an introductory period of one month to ten years. After the introductory period, the rate adjusts annually based on a market index, but cannot go above a predetermined adjustment cap. The shorter the introductory period, the lower the rate you pay. Stearns Lending Loan Experts are trained to help you select the fixed period that allows you to minimize interest payments while protecting you during your expected time of ownership.
Learn More
– What would my payments be with an 80/20 or 1st and 2nd combination loan?
– What are the benefits of refinancing?
– Mortgage Refinancing Basics
– What is the maximum loan I can afford?
– What are the payments on a fixed vs. adjustable rate mortgage?
– Does it benefit me to consolidate my debt?
– What will my monthly payment be?
