Adjustable Rate Mortgage

With adjustable rate mortgages, you can typically take advantage of the lowest rates available in the market. An ARM is a loan option you may want to consider if rates are on the decline, you’re planning on keeping the property for a short time or you just prefer to have the lowest payment possible.

Features:

• Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 3, 5, 7, or 10 years, then adjusts annually.
• Includes interest rate caps that set a limit on how high your interest rate can go.
• Available for Conforming, Jumbo, FHA and VA Loan Programs.
• Refinance up to 95% of your home’s value.
• Purchase your home with as little as 5% down payment.
• Interest only payment option available.

Benefits:

• Typically, ARMs have a lower initial interest rate than fixed rate mortgages.
• The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
• May provide flexibility if you expect future income growth, or if you plan to sell or refinance in the near future.

Things to Consider:

• Monthly principal and interest payments may increase when the interest rate adjusts.
• Your monthly principal and interest payments may change every year after the initial fixed period is over.