Adjustable Rate Mortgages (ARM)
An ARM can be an ideal loan for those who plan on remaining in their new home for less than seven years, or for those expecting an increase in their income down the road. Borrow up to $510,400 (or more, in high-cost areas; see loan limits), no penalty to refinance at a later date. An annual ARM where the interest rate is recalculated each year is also available.
An Adjustable-Rate Mortgage (ARM) includes:
FHA, Conventional, VA, Jumbo, and Refinance Loans
Adjustable-Rate Mortgage benefits and features
May be a good choice for those planning to move before the end of the initial fixed period.
An ARM occasionally has a lower interest rate and monthly payment than Fixed-Rate Mortgage for the initial fixed-rate period.
Payment caps limit the amount of rate change that can occur in certain time periods.
Borrowers can refinance at the end of the initial fixed period.
Other requirements and conditions apply.
See sample scenarios HERE.