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| Adjustable Rate Mortgages |
An adjustable rate mortgage, or an "ARM" as they are commonly called, is a loan
type that offers a lower initial interest rate than most fixed rate loans. The
trade off is that the interest rate can change periodically, usually in
relation to an index, and the monthly payment will go up or down accordingly.
Against the advantage of the lower payment at the beginning of the loan, you
should weigh the risk that an increase in interest rates would lead to higher
monthly payments in the future. It's a trade-off. You get a lower rate with an
ARM in exchange for assuming more risk.
For many people in a variety of situations, an ARM is the right mortgage
choice, particularly if their income is likely to increase in the future or if
they only plan on being in the home for three to five years.
Selecting a mortgage may be the most important financial decision you will make
and you are entitled to all the information you need to make the right
decision. Don't hesitate to contact a Loan Officer at 800.232.8669 if you have
questions about the features of our adjustable rate mortgages.
Click here for detailed information explaining
how ARMs work.
Do you have mortgage questions?
Click here to go to our mortgage resource center.
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