No two homeowners are exactly alike, so it stands to reason no two mortgages are alike. That’s why we have a wide selection of customizable options when it comes time to finance. Fixed-rate loans are common among borrowers who want a stable payment or longer term.
For those interested in a lower initial rate or for those who plan to be in their home only a short time, an Adjustable Rate Mortgage (ARM) is an attractive option.
Benefits of ARM Loans
We know all homeowners have different needs. That is why we identified a few key advantages of an ARM loan.
Lower Monthly Payments - The biggest advantage of an adjustable-rate mortgage is the initial rate for an ARM may be lower than that of a fixed-rate loan, resulting in lower monthly payments
Decline in Interest Rates - The market could fall, and you could wind up with a significantly lower monthly payment without having to refinance.
An ARM is a smart choice for you, if you are the homebuyer who:
Wants the lowest possible payment for the first 5-10 years of the loan
Plans to stay in their homes less than the 5, 7, or 10-year initial term
Has the ability to pay down the loan amount incrementally with bonuses or commissions, lowering their overall principal balance
Plans to pay the home off in a short period of time, benefiting from the low initial rate without having to worry over the future adjustable interest rate.
Plans to renovate and flip a property within a given timeframe
What is an ARM?
An Adjustable Rate Mortgage (ARM) is where the rate remains fixed for the initial period, typically 5, 7, or 10 years. After the initial period, the rate will fluctuate monthly or annually based on market conditions.
ARMs do have rate caps that limit how high the rate can get. Our team of loan specialists can explain rate caps and how it will affect your payment over time.
Ready to Mortgage Smartly™?
An adjustable rate mortgage has distinct benefits, including low introductory interest rates. We take great pride in offering the lowest mortgage rates in the industry coupled with exceptional customer service. Our loan specialists are eager to determine if an adjustable ARM is the right choice for you.
Fill out a low rate quote request today. See how we can make an ARM loan the ideal financing option for you.