An adjustable rate mortgage, or ARM, is typically for borrowers who don’t expect to own their home for an extended period of time.
With an ARM, the interest rate is fixed for a set period (usually three, five, seven or ten years), and then adjusts periodically. During the initial fixed-rate period, the rate is generally lower than what you’ll find on comparable fixed-rate mortgages. However, after the fixed-rate period ends, the rate can go up, which would increase your monthly mortgage payment. For this reason, an ARM is not recommended for every buyer.
For more information about ARMs, including complete eligibility requirements, contact us today.
