What is an Adjustable Rate Mortgage (ARM) loan?
When you buy a home with an Adjustable Rate Mortgage (ARM) you will have a lower initial interest rate and payment for the initial term of the loan and then adjusts annually for the remaining time period. This is great for borrowers who want to save money upfront. For example, a 5/1 ARM will have a lower fixed interest rate for the first 5 years of the loan and then the interest rate will adjust every (1) year thereafter.
Types of ARMs
- 5/1 ARM rates are fixed for the first five (5) years and then the rate can adjust every one (1) year thereafter
- 7/1 ARM rates are fixed for the first seven (7) years and then the rate can adjust every one (1) year thereafter
- 10/1 ARM rates are fixed for the first ten (10) years and then the rate can adjust every one (1) year thereafter
Is an ARM right for me?
A Carrington ARM loan may be the right choice for a home refinance if:
- You are looking for a lower initial interest rate
- Current mortgage rates are higher than you can afford and you intend to refinance before the initial interest rate term expires
- You only plan to live in the home being financed for a few years, before the initial interest rate will be adjusted
How do I get an ARM loan?
Once you have decided an ARM will fit you best, contact us to speak with a Carrington loan officer.
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