ARMS Loans

ARMS LOAN – Adjustable Rate Mortgage

Adjustable rate mortgages generally offer a very low interest rate for the short-term. This mortgage is generally more suitable if you are not planning to be in the same home for a long period of time or if you need lower monthly mortgage payments in the short-term. One example of an adjustable rate mortgage is a 5/1 ARM with a 30 year term which would give you a low fixed rate and set low monthly payment for the first five years of the loan. After the five years, the rate and payment may adjust once per year for the remainder of the 30 year term.