rate mortgages (ARM) offer lower initial interest rates than
fixed-rate mortgages. But after an initial period, those rates are adjusted
to follow the market. Monthly payments on this type of loan can go up
or down as the market conditions change. There are ceilings, or "rate
caps", on the amount the interest rate can rise or fall to protect
you in times of extreme rate fluctuation.
You might consider an adjustable-rate mortgage if you:
- Need lower initial
- Have a small
income but expect to earn more in the future.
- Plan to live
in your home for only a short time.
A 6-month ARM offers an initial interest rate for the first
6 months, and can be adjusted every 6 months thereafter based on the
A 3/6-month ARM's initial rate is effective for 3 years, and
can be adjusted every 6 months thereafter based on the applicable index.
1, 5, and 7 Year ARM
mortgages maintain an initial interest rate for 1, 5, or 7 years, and
can be adjusted every year thereafter based on the market conditions.
Find out more about "Other
Mortgages Rates" and compare loan options and benefits!
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