Adjustable Rate Mortgage

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What's an Adjustable-Rate Loan?

RM's provide the ability for clients to receive a lower interest rate at the beginning of their loan term than what is offered through fixed-rate programs.
They are usually provided in a 30-year repayment term,but will change after a negotiated period of 1, 3,5,7,or 10 years.
ARM's allow clients to receive a lower interest rate at the beginning of their loan term than what is currently offered through fixed-rate programs.

Who should consider an Adjustable-Rate Loan?

A perfect loan alternative for clients who are only planning to stay in their home for a few years.
Clients that are considering moving before the rate is scheduled to change.
If you are refinancing from a higher rate loan.

Since most homeowners either move or refinance within five to seven years, Bank of England provides many types of Adjustable Rate Mortgages (ARMs).

These Short-Term-Fixed rate mortgage loans can be first or second mortgages and have an interest rate that is fixed for a certain period of time making 1, 3,5,7,or 10 years ARMs excellent loan options. Once the time period ends, the rate will adjust (either up or down) based on a stated market index.

These loans have starting rates lower than traditional fixed rates and appeal to individuals and families that plan on refinancing or moving within a shorter period of time or find difficulty qualifying for a mortgage.