Adjustable Rate Mortgages (ARM)

An Adjustable Rate Mortgage is a mortgage whose interest rates is raised or lowered at periodic intervals according to prevailing interest rates in the market. Also called Variable-Rate mortgages. Adjustable rate mortgages allow the interest rate on a home loan to fluctuate during its life. When financial markets are unstable, adjustable rate mortgages can be risky for home owners because the rate can increase with little notice. On the other hand, this type of mortgage may allow the borrower to purchase a more expensive home. To get started immediately, click here for our online application.

Adjustable-rate loans vary, but they all share one common factor -- some aspect of the terms of the loan can be changed by the lender during of payment, or length of time for repayment. If you are considering applying for any type of adjustable-rate loan, make sure you understand exactly how the mortgage works, including the spread between the interest rate and the index to which the rate is tied; how often the loan can be adjusted; the maximum allowable increase (or decrease) each year as well as over the life of the loan.