Rate Mortgage Loans
adjustable rate mortgage loan has an interest
rate that will change over the
life of the loan. Typically, the interest
rate is lower than a fixed rate in the first few
years. The low rate period can be from 1 to 5
years. The rate will start to adjust every year
based upon market conditions and the terms of
the loan. There are rate caps that are stepped
from one year to the next with stipulations such
as the maximum increase or decrease when the rate
changes. The is a second type of cap that specifies
the maximum allowable rate over the life of the
of a adjustable rate mortgage loan
initial interest rates
be more affordable for you because the rates can
be lower in the early periods of the loan
the first years of the loan, the payments are
lower initial interest rates lower your mortgage
costs, giving you more disposable income than
a fixed rate mortgage loan.
an adjustable rate mortgage when:
are planning on moving out of the home in under
5 years (depending on the term of your ARM, your
loan payments will start to increase after the
lower fixed rates in the beginning of the mortgage).
are comfortable with the fact that your payments
in the future are unknown and could have the potential
to be much higher than the initial period.
is the next step?
Lending Partners’ free loan request service will match
you with up to four lenders to help you lower
your interest rate.