Adjustable-Rate Mortgage (ARM)
About this loan
An Adjustable-Rate Mortgage (ARM) offers a lower initial interest rate compared to a fixed-rate mortgage, making it a cost-effective option for buyers who plan to move or refinance within a few years. With an ARM, the interest rate remains fixed for an initial period (e.g., 5, 7, or 10 years) and then adjusts periodically based on market conditions. It can be a good choice for buyers who want to maximize their purchasing power or anticipate rising income in the near future.
Why Choose This Loan?
Lower Initial Payments: The initial interest rate is generally lower than fixed-rate mortgages, making monthly payments more affordable in the early years.
Flexibility: Choose from various initial fixed-rate periods (5, 7, or 10 years) to match your financial plans.
Adjustment Periods: After the fixed-rate period, rates adjust periodically, but caps limit how much rates can rise during each adjustment and over the life of the loan.
Ideal For: Short-term homeowners, buyers expecting income growth, or those planning to refinance before the adjustable period begins.
Interest Rates:5/1 ARM: Starting at 4.75% APR
7/1 ARM: Starting at 4.95% APR
10/1 ARM: Starting at 5.10% APR
Down Payment: As low as 5%.