Consider an Adjustable Rate Mortgage
An Adjustable Rate Mortgage, or an ARM, is a mortgage with an interest rate that periodically changes, unlike a fixed rate mortgage which has an interest rate that remains the same for the life of the loan. The initial interest rate of an ARM is lower than that of a fixed rate mortgage.
With interest rates on the rise, it may be time for home buyers to take a fresh look at some alternatives to the 30-year fixed-rate mortgage, which has dominated the mortgage market since the latest financial crisis. If you don't plan to live in a home for 30 years, why borrow for 30 years to buy it? Borrowing on a 30-year term to finance a home you plan to live in for just 5-10 years is a losing proposition. You'll pay thousands of dollars more in interest, and own less of your home when you sell it.
We’re here to make this process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our Adjustable Rate Mortgage Qualifier.
We’ll help you clearly see the differences between loan programs, allowing you to choose the right one for you – whether you’re a first-time home buyer or a seasoned investor.
The Adjustable Rate Mortgage Loan Process
Here’s how our ARM home loan process works:
- Complete our simple Adjustable Rate Mortgage Qualifier
- Speak to a Homeland Lending Licensed Home Loan Consultant
- Receive options based on your unique criteria
- Choose the offer that best fits your needs
Why an ARM?
Most homeowners get into adjustable-rate mortgages for the lower initial payment, and then usually refinance the loan when the fixed period ends. At that time, the interest rate becomes variable, or adjustable, and the homeowner would likely refinance into another ARM, something fixed, or sell the home outright.
BENEFITS:
- Rates can go down, too
- Lower rates than traditional fixed rate loans
- Build equity faster
- Qualify for higher loan amounts
- Flexible ARM terms (3 year, 5 year, 7 year, and more)
Adjustable Rate Mortgage QUALIFIER