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Adjustable Rate Mortgage (ARM)

LET'S EXPLAIN SOME KEY POINTS...

Adjustable-rate mortgages (ARMs), also known as variable-rate mortgages, have an interest rate that may change periodically depending on changes in a corresponding financial index that's associated with the loan. Generally speaking, your monthly payment will increase or decrease if the index rate goes up or down. ARM loans are usually named by the length of time the interest rate remains fixed and how often the interest rate is subject to adjustment thereafter. Not picking up what we're putting down? Here's an example, in a 5/1 ARM, the 5 stands for an initial 5-year period during which the interest rate remains fixed while the 1 shows that the interest rate is subject to adjustment once per year thereafter. There are different terms to choose from when it comes to that initial fixed rate period such as 5/1, 7/1, 10/1, etc. Don't hesitate to ask us questions!

Plan On Moving Or Refinancing

Most choose this option because they know they will move in less than 5, 7, or 10 years. Or know they will refinance prior to the end of their initial term. This is also a good option for those who are looking to refinance and benefit from the lower monthly payments because of the lower initial interest rates, then plan on moving or refinancing again before that initial fixed rate term ends.

Lowest Rate For Initial Term

ARMs do tend to give our borrowers the lowest interest rate available for qualified buyers vs conventional fixed rate mortgage loans. Making the initial term a lower, more appealing and a very affordable monthly payment. It's important you understand the factors of an ARM, so go ahead and reach out to us!

Your Alternative To Renting

Tired of renting? Want a place you can call your own? Know you won't stay in one place forever? Maybe you still might consider having roommates, but want them to pay you rent? This is a great option for such circumstances. Explore the details and get pre-qualified to see if you can get out of the renting game!

"Owning a home is a keystone of wealth - both financial affluence and emotional security."
- Suze Ormen

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