ADJUSTABLE RATE MORTGAGE
MORTGAGE EDUCATION
How Does it Work?
With the Adjustable Rate Mortgage, the interest rate will remain fixed for a certain period. It will change annually after this period has passed, depending on the market. The monthly payments on your mortgage can either increase or decrease every year. The good news is that your rate can’t go higher than 5% from the original rate for the remainder of the loan’s life.
One of the most popular options here is the 5/1 ARM or Adjustable Rate Mortgage which ensures that the interest rate on the loan isn’t going to change for 5 years
All qualified service members, veterans, and their spouses can acquire an ARM with their VA loan.
There is also an ARM option with the FHA
The best part about the fixed interest rate is that the interest and principal payments will remain the same. However, your insurance and taxes can increase or decrease.
THE MAIN BENEFITS
When it comes to Adjustable Rate Mortgage, you need to know about some benefits. These include:
Incredible savings
The initial interest rate is less than other types of loans
The lowest interest rate is 3.75% (4.94% APR) for a 5/1 ARM
Very affordable monthly mortgage payments during the initial years
You can make down payments as low as 5% on home loan purchases
You can also refinance up to 95% of the home value
Why Choose Iconic Mortgage Corp for Acquiring A Loan
When you’re thinking about getting a loan, think of the several benefits that you stand to gain by choosing Iconic Mortgage Corp. Some of these benefits are:
Dealing with less paperwork, as the application process is online; this makes tracking your mortgage application easier as well.
To understand if an ARM is the right choice for you, contact Home Loan Experts through phone, chat, and email.
Managing your mortgage is easier as you can do it online after closing your loan, with the help of our lending partners, who’ll manage your mortgage and there are no hidden charges as well.
