Meet Mike and Stephen
- This Is An Investment Property
- They Don’t Plan On Owning For Long
- They Know They Will Be Relocating Within The Next Two Years
We Make The Home Buying Process As Smooth As Possible
What Is An ARM (Adjustable Rate Mortgage)?
Some people think of ARMs as just being a type of mortgage, but they’re actually more than that. Adjustable-rate mortgages start with low fixed interest rates for three to 10 years and then there will be periodic adjustments in interest rates after this period has passed; these changes can either help or hurt you depending on how much risk is involved (ie: if it’s risky loans). This means that anyone looking into buying property should consider both types before taking out any financing!
Adjustable Rate Mortgage Key Takeaways:
- An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan.
- With adjustable-rate mortgage caps, there are limits set on how much the interest rates and/or payments can rise per year or over the lifetime of the loan.
- An ARM can be a smart financial choice for home buyers that are planning to pay off the loan in full within a specific amount of time or those who will not be financially hurt when the rate adjusts.
An ARM Loan might be be right for you:
- If you aren’t planning on living in the property long term
- If you plan on paying the loan off in the next few years
- If you know you will be moving within the next few years
- If this is an investment property