What
are Adjustable Rate Mortgages & How Do They Work?
Adjustable rate mortgages, often referred to as “arms”,
may have a fixed period of time where the rate is
lower than traditional 15 - 40 year fixed rate products.
Upon completion of the initial fixed-rate period,
the rate begins to adjust up or down based upon the
value of an assigned index. Thus, if you are looking
for a low initial payment and only plan to be in a
home for ten years or less, an adjustable rate mortgage
might be a good decision. Ask your AAXA loan advisor
if a 5
year adjustable rate mortgage, 3
year ARM, or any other adjustable rate loan product
might be right for you.
Request a free adjustable rate mortgage
rate quote
or call us toll free at 877-RATE-LOW (877-728-3569)
for a consultation. .
Advantages vs. Disadvantages – Adjustable Rate Mortgage
Information
It is very important to research adjustable rate mortgage
information and weigh the pros and cons. Although you
save money by locking in on a lower rate initially,
you have to weigh the risk of a potential hike in interest
rates. It is a matter of individual risk tolerance.
Typically, the shorter the fixed period of an arm, the
lower the rate. For example, the starting rate for a
5 year ARM mortgage may be slightly higher than a 3/1
adjustable rate mortgage. AAXA works with lenders that
offer loans from 2 year arms to up to 10 year arms.
You may want to ask yourself a few questions before
pursuing an adjustable rate loan:
- How long do I plan to be in the home?
- Will I be able to cover higher payments if the rate increases?
- How much will I save with an ARM? How could those savings help me and my family with other needs?
- Could an adjustable rate mortgage help me afford a more expensive home and do I believe that my future income will cover the risk of future adjustments in rate?
- Is taking out a adjustable rate mortgage in a
declining market a good idea?
To learn more about Adjustable Rate Mortgages, call 877-RATE-LOW (877-728-3569)
Products that you may want to research:
10 Year Adjustable Rate Mortgage
7 Year Adjustable Rate Mortgage
5 Year Adjustable Rate Mortgage
3 Year Adjustable Rate Mortgage
2 Year Adjustable Rate Mortgage
1 Year Adjustable Rate Mortgage
1 and 2 Year Jumbo ARM
Convertible ARMs - free fixed rate conversion for first
60 months
30 year mortgage interest only
3 year interest only loan
5 year interest only mortgage loan
10 year and 7 year interest only mortgage
