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.