An adjustable-rate loan (also known as an ARM) is a type of mortgage that has an interest rate that can change over time. The interest rate is typically fixed for an initial period, and then adjusts periodically based on market conditions.
One of the main advantages of adjustable-rate loans is that they typically offer lower interest rates than fixed-rate loans during the initial fixed period. This can provide borrowers with lower monthly payments and more flexibility in their budget.
Adjustable-rate loans are available in a variety of terms, ranging from 5 to 30 years. The most common terms are 5/1, 7/1, and 10/1, which means that the interest rate is fixed for the first 5, 7, or 10 years, and then adjusts annually thereafter.
Adjustable-rate loans are a great option for borrowers who plan to stay in their homes for a short period of time or who expect their income to increase in the future. They are also a good option for borrowers who want to take advantage of lower interest rates during the initial fixed period.
At Amerifund, we offer a variety of adjustable-rate loan options to meet your needs. Our experienced mortgage brokers will work closely with you to understand your unique financial situation and help you choose the best loan option for your needs. Our team of mortgage loan originators will work closely with you to ensure that you understand all of your options and choose the right loan program for your unique financial situation.
If you’re ready to explore your adjustable-rate loan options, contact us today to schedule a consultation with a member of our team. We look forward to helping you achieve your homeownership goals.