Adjust to your lifestyle.
You can save some money when you get a mortgage with an adjustable interest rate, especially when rates are low. This option also is helpful for providing more breathing room when you need a Jumbo Loan.
Here's how ARMs work: You get a fixed rate for a few years before the mortgage adjusts annually, based on a particular index value. Point is, you either want to sell before your rate increases or refinance your mortgage. But you'll save money upfront because the intro rate is lower than a fixed-rate option.
- Increases the availability of credit if you're looking for a Jumbo Loan.
- Get a fixed rate for 3, 5, 7 or 10 years before the mortgage becomes adjustable.
- Ideal if you're planning to sell your home before the low intro rate adjusts upward.
- Down Payment: Varies.
- Terms: 3/1, 5/1, 7/1, 10/1 years fixed/year.
- Credit Score: Varies.
- Mortgage Insurance: Varies.
- Maximum Loan Limit: Varies.