Adjustable Rate Mortgages
Since ARMs are typically offered at lower interest rates, they can make it easier for you to qualify for a loan, since less income is needed to qualify for a lower monthly payment. In addition, the lower interest rate may allow you to borrow more money and purchase a larger home with more amenities.
- An initial fixed term option of 1, 3, 5, 7 or 10 years is a great alternative if you know you will not be in your home for a long time.
- Adjustments at specified times during the life of your loan mean you know exactly when to expect change, and exactly how much that change may be.
- Interest-only ARMs are also available, which gives you complete control of how you pay the principal balance of your mortgage, while keeping your monthly payment to an absolute minimum.
