Adjustable Rate Mortgages (ARMs)
Many people are drawn to adjustable rate mortgages (ARMs) due to the fact that they generally offer low introductory mortgage rates that remain in place for a certain period of time. However, the introductory rate period is only temporary and after that term expires, the mortgage rate on an ARM can adjust. This can make ARM loans a more affordable option in the short term, but a more risky home financing choice in the long run.
ARMs could be a great choice for anyone who is confident in their ability to afford a higher mortgage payment in the future, or for home buyers who plan to sell or refinance within the first 3-7 years. Keep in mind however, that an ARM loan doesn’t provide the stability and predictability that a conventional fixed rate mortgage does. Talk to an experienced loan officer to help determine whether an ARM is right for you.
If you decide an ARM isn’t your best option, not to worry. We offer a wide range of home loan programs to meet the needs of most home buyers. Whether you are looking for buy your first home, an investment property, or a vacation home, help is right around the corner. Give us a call today at (813) 863-9464 for a free quote and consultation.
Low Introductory Rates
Potentially save on monthly principal and interest payments during the loan’s introductory rate period. Note that there are times where fixed rate pricing is lower than the introductory rates from ARM products. Ask us for details.
Short Term Solutions for the Right Borrowers
Borrowers who only plan on being in the properties from 1-10 years may want to inquire about one of our ARM programs. Adjustable rate loan programs often have introductory rates of 3, 5, 7, and 10 years.
Higher Risk vs. Short Term Savings
There are additional risks with an adjustable rate loan as rates can and do adjust over time. Be sure to have a thorough understanding of the risks and rewards of adjustable rate mortgages before moving forward.