Adjustable Rate Mortgage
An Adjustable Rate Mortgage
, also commonly known as ARM, is a home loan option that can have an alternating interest rate after a fixed number of years. After the fixed term, the interest rate of an adjustable rate mortgage will adjust, resulting in higher or lower monthly payments. Typically, adjustable rate mortgages are ideal for home buyers planning on moving after several years or don’t plan on owning the home for a longer period of time.
An Adjustable Rate Mortgage Defined
The one key benefit to an adjustable rate mortgage is a lower interest rate. Although ARMs are potentially unstable and your monthly payments can alternate throughout the life of the loan, this particular home loan option is a great alternative to a long-term 30 year fixed rate mortgage because of these lower interest rates.
Adjustable rate mortgages are often a good way for home buyers to qualify for a larger home loan amount, ultimately allowing for buyers to purchase a more expensive home and perhaps increase the overall return of a housing investment. To ensure at least some security of an adjustable rate mortgage, ARMs also offer lifetime rate caps, ensuring that your home loan won’t exceed a certain amount.
Why United Home Loans For An Adjustable Rate Mortgage?
United Home Loans prides itself on employing a smart and experienced staff that works hard to not only meet, but exceed, our clients’ expectations. Along with a top-notch team of mortgage bankers, United Home Loans will work to get you the lowest mortgage interest rate possible on an adjustable rate mortgage. Call us today at (708) 531-8388 today or simply fill out our Free Mortgage Rate Quote form online to learn more about your home loan options!