Adjustable Rate Mortgages

An Adjustable Rate Mortgage (ARM) offers homeowners the flexibility of an initial fixed-rate period, followed by interest rate adjustments based on market conditions. This type of mortgage is a great option for buyers who anticipate that their income will increase over time or for those planning to move before the rate adjusts. ARMs typically offer lower initial rates compared to fixed-rate mortgages, making them an attractive option for homebuyers who want to save money in the early years of their loan.

While the initial interest rate is fixed, the rate will adjust periodically after the initial term. These adjustments can result in higher or lower monthly payments depending on the direction of interest rates. If you’re comfortable with a bit of uncertainty and want to take advantage of lower rates early in your mortgage term, an ARM can provide a flexible solution to home financing.