Considering an Adjustable Rate Mortgage

Features of an Adjustable Rate Mortgage (ARM)

An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a market conditions. An ARM loan may include an initial fixed-rate period that is typically 3 - 10 years. The interest rate may adjust once the initial fixed period ends.

ARM loans typically have lower rates and low monthly payments as compared to fixed-rate loans, but rates may increase or decrease after the initial period ends. Many homeowners seek out the security of a fixed-rate mortgage, but an ARM can sometimes be a better option depending on your lifestyle.

  • Purchase your home with a down payment as low as 5%
  • Refinance with as much as 95% of the value of your current home
  • Lock in to a low mortgage rate
  • Your initial interest rate is typically lower than other loan types
  • Your monthly payments could more affordable right off the bat

Why Choose Intelliloan® for your ARM?

  • Intelliloan® makes it easy to complete your loan application conveniently online. We can help even more when you get assistance from one of our mortgage specialists.
  • Our home loan specialists can be reached easily by phone, email, or chat to make sure you get the right ARM option for you.
  • Continue to receive all of the benefits from our dedicated customer service team long after you close your loan with us.

Types of ARMs

  • Your adjustable-rate mortgage (ARM) can be fixed for a period of 5, 7, or 10 years
  • You can have the option of an ARM with an FHA loan
  • Qualified service members, veterans, and spouses can choose an ARM with a VA loan

How does an ARM Work?

  • You pay a fixed interest rate for a period of 5, 7, or 10 years
  • After the initial period your interest rate may fluctuate according to the market
  • This means the amount of your monthly mortgage payment could go up or down

Is an ARM the Right Choice for You?

An adjustable-rate mortgage (ARM) is a 30-year mortgage where the rate is fixed for a certain time period – usually 5, 7, or 10 years. Once this fixed-rate period ends, the interest rate may adjust each year depending on the market rates at that time.

You can have the benefit of a lower interest rate with an ARM compared to a fixed loan because you are not paying for a fixed-rate security of 15 or 30 years.

In many cases, you may be able to take advantage of an adjustable-rate mortgage (ARM) from a cost savings standpoint. The reason is that you may decide to either refinance or even sell your home before the time your ARM adjusts.

Call an Intelliloan® Home Loan Specialist Today!

If you are considering an adjustable rate mortgage, discuss your options with our home loan specialists. Call us now at 833-984-2471, or get started with us by filling out this online form.