Loan Options
Adjustable Rate Mortgages
- Ideal if you plan to stay in your home for less than ten years
- Enjoy a low fixed interest rate and monthly payments for a 5, 7, or 10-year period
- Quick approval and closing complete within 30 days
What is an ARM loan?
With an adjustable-rate mortgage (ARM), the interest rate changes at regular intervals based on a formula that uses a market index. For most ARM options, rate adjustments begin after an initial period of five, seven, or ten years. During the initial period, the rate is fixed.
Is an ARM the best option for me?
An ARM is usually best if you plan to move before the rate adjustments begin, or if you are buying when rates are relatively high. An ARM can also be used as a tool to pay down your principal balance at a rate lower than a 30 or 15-year fixed, but you have to be committed to paying down the balance and keep a close eye on the initial fixed rate period.
When is an ARM not the best choice?
An ARM is usually not the right choice if fixed rates are low and you plan to stay in your home for seven to ten years or more.
