Adjustable Rates

An adjustable rate mortgage otherwise know as an ARM has an interest rate that adjusts on a set schedule and remains fixed for the initial period. These adjustments depend on different types of indexes. These indexes can be treasure bills, or the Libor index is common.

Advantages of an adjustable rate mortgage

An adjustable rate mortgage from one of our lenders is a great alternative for borrowers that are ok with only having a small fixed period. This initial fixed rate period usually gives a borrower time to fix their credit issues and refinance into a fixed rate mortgage once their adjustable rate starts to adjust.

An adjustable rate mortgage can be great for a borrower that only wants to stay in the home for a short time. This benefits the borrower by giving them the lowest possible interest rate for that short time they plan on being in the home.