What is An Adjustable Rate Mortgage?
Providing Flexibility for Homeowners
An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment.
Adjustable-Rate Mortgage Highlights
An ARM might be the right option for you if you plan on moving within 7 years since they feature lower introductory interest rates. If interest rates are expected to fall, a homeowner could potentially reduce their monthly payments with the lowered interest rates. Highlights of an adjustable-rate mortgage include:
- Lower initial monthly payments
- Possibility to qualify for higher loan amounts
- Rates and Payments may decrease based on the index rate
If you are interested in an adjustable-rate mortgage, please contact an Elite Group Mortgage Professional.
Other Loan Options
VA LOAN
Best if you are active-duty military, a veteran or military spouse.
FHA
Best if you are a first-time homebuyer or have a limited amount of funds for a down payment.
Conventional
Best if you have good credit and a larger down payment to possibly receive lower rates with more flexible terms
Carson Paiz
Elite Group Mortgage Expert
Elite Group Mortgage offers home purchase and refinances loans. We are headquartered in Grand Junction, Colorado. Elite Group Mortgage is dedicated to helping you achieve your home financing goals. Equal Housing Opportunity.
