Adjustable-Rate Mortgages (ARMs)
- Do you plan to relocate in less than 10 years?
- Do you plan to pay off your mortgage in 10 years or less?
- Do you want to take cash out of your home's equity but maintain a low monthly payment?
If you answered “yes” to any of these questions, an adjustable-rate mortgage might be right for you!
Adjustable-Rate Mortgage Features
- 5, 7, or 10-year fixed-rate introductory periods available.
- Purchase with as little as 5% down or refinance up to 95% of value (using private mortgage insurance).
- Loan amounts from $40,000 to $726,200.
How an Adjustable-Rate Mortgage Works
- ARMs are mortgages with two phases: an initial fixed-rate period, followed by a period in which the interest rate on your loan will adjust according to market fluctuations.
- Your principal and interest payment will not change during the fixed-rate introductory period.
- The interest rate after the introductory period will adjust (up or down) based on the index, which is based on market conditions, and your loan's margin, which is a percentage added to the rate by your lender.
- ARM rates are generally capped in several different ways. Ask your lender for more information!
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