ARMs, as they are generally called, offer you lower initial interest rates and payments, with the potential for adjustment at specified times during the life of the loan. Standardized ARMs provide for the interest rate to be fixed for three years, or five years, etc... then adjust annually thereafter (called a 3/1 ARM, or a 5/1 ARM, 7/1 ARM, and 10/1 ARM's)Whether your payments go up or down at the adjustment date depends on market conditions. There are limits (or "caps") on how much rates and/or payments can change at each adjustment interval . . . and over the life of the loan. In most cases, the initial ARM interest rate is lower than the current available fixed-rate. An ARM may be an excellent choice if:

• You can benefit from a lower rate now to buy the home you want, and you anticipate rising future income
• You're willing to accept the risk of rate increases and/or you expect rates to fall
• You plan to stay in your home for a fairly short period of time.
• You're applying for a mortgage when fixed interest rates are relatively high.

 

For information on rates and terms, please contact us at:



or e-mail lenny@444loan.com

 

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