Adjustable Rate Mortgage

Adjustable Rate Mortgage (ARM)

An Adjustable Rate Mortgage, also known as a Variable Rate Mortgage, offers a lower initial interest rate for 3, 5, or 7 years. After that time, the rate may vary and the payment may increase annually, depending on the current interest rate. This means the principal and interest of your monthly payments could go up or down.

Typically lower initial rates than other loans
Security of knowing the principal and interest of your monthly payments for the initial period of your term
Rate caps protect you by limiting the amount your rate can increase
No prepayment penalties if you pay off the loan early
Available in FHA, Va, Conventional and Jumbo Loans

An ARM may be right for you if:

You plan to relocate or refinance in the next 5 to 7 years
You anticipate major lifestyle changes such as a an increase in income
You are willing to accept the risk of future interest rate changes
If that sounds like you, then an Adjustable Rate Mortgage may be a good choice.