Adjustable-Rate Mortgages (ARM)

Adjustable rate mortgages are an attractive choice for people who plan to stay in their home for a short period of time, generally 5 to 7 years. An ARM rate is usually very low for the mortgage term, saving the homeowner thousands of dollars over a traditional fixed-rate mortgage. That's why they're well suited to people who are looking to refinance or who want the lowest possible monthly mortgage payment over a set time period.

Some things to think about when considering an Adjustable-Rate Mortgage:

• There is the possibility of fluctuations in the interest rate and monthly payment.
• The lower interest rate may help the borrower to qualify more easily.
• The interest rate is fixed for the initial 3,5,or 7 years of the loan payment period, depending on the term you choose.
• Substantially lower initial rates must be balanced against the risks associated with the possibility of a higher rate and payment when the loan adjusts at the end of the initial term.
• Interest rates are capped at 5% above your initial rate and at 2% per adjustment period.

Contact us today to learn all the advantages of ARMs.