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 (800)-470-7750, or get started with us by filling out this online form.