Adjustable Rate Mortgage
As the name implies, Adjustable Rate Mortgages (ARMs) have interest rates that change at a pre-determined frequency. If you anticipate a significant increase in your income or property value in the next several years, plan on staying in your home short-term, or would like to significantly lower your payment, an ARM might be right for you.
Some reasons many of our borrowers opted for Adjustable Rate Mortgages…
- They saved thousands in payments vs. a fixed rate loan during the initial period
- They used the savings for other purposes, such as paying down other debt, college tuition, etc…
- They only intended to be in the property for a short time, then sell it
- They were able to put as little as 5% down (FHA 3.5%), or refinance up to 95% of your home's value