IS AN ARM RIGHT FOR YOU?
ARM (Adjustable rate mortgage) loans start with an introductory interest rate for the first 5 to 10 years. After that, it adjusts annually to reflect current interest rates.
ARMS AT A GLANCE:
Lower initial interest rates and monthly payments for the first 5-10 years of the loan
Rates adjust after the initial period to reflect current rates
Payments after the initial period fluctuate annually depending on the federal rates and may increase substantially
ARMs are a great option for homeowners who don’t plan on living in the home for more than a few years or beyond the initial fixed-rate period .
Lower initial rates leave more money in your wallet due to lower mortgage payments, leaving you extra wiggle room to save money for the future.