The interest rate on an adjustable-rate mortgage (ARM) changes
at a specified time after an initial "fixed" period. For
example, a 5/1 ARM is fixed for five years and then adjusts in
year six. We offer a wide variety of ARMs to fit your unique
needs, including 3/1, 5/1, 7/1 and 10/1 ARMs.
Why consider an ARM?
Lower rates. ARMs generally have the
lowest possible mortgage rate. In fact, ARM rates, such as
that of a 7/1 ARM, can be approximately 1% lower than that of a
30-year fixed-rate mortgage. The 7/1 ARM rate would be fixed
for seven years, potentially saving you thousands in interest
expense that you could use, for example, to pay off credit card
debt, or add to your retirement savings.
You plan to sell your home soon. If you plan to
sell your home before the loan adjusts, you may save money versus a
fixed-rate loan. For example, if a job transfer is likely, an ARM
would be a better solution than a higher rate, 30-year fixed-rate
mortgage. The lower initial rate of an ARM can be a good strategy
for mobile professionals, homeowners who plan to upsize or
downsize, and anyone who will live in their home for the short
term.
You want "more house." By applying for an ARM,
you may qualify for a higher loan amount and can buy a more
valuable house.
Call 888-673-5521 to get your personalized
rate quote for an adjustable rate mortgage.
See
today's low adjustable-mortgage rates.
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