Adjustable Rate Mortgage
Adjustable Rate Mortgages or ARM Loans offer low introductory interest rates to homeowners. Learn more about the benefits and drawbacks of ARM Loans below.
What are some of the advantages of ARM Mortgages?
Adjustable rate mortgages are ideal for people at less risk of defaulting on their loan in the event of market instability, such as short-term homeowners, or for those expecting to pay their mortgage incredibly quickly. The biggest advantage to ARM rates from US Mortgages is the lower rates and payments early in the loan. With a Fixed Rate Mortgage, your interest rate cannot change without refinancing the loan. Your interest rate with an ARM will vary month to month, allowing you to benefit from low interest rates without the hassle of refinancing your entire mortgage. In exchange for taking the risk that interest rates will rise, banks typically offer ARMs at lower introductory rates than fixed rate mortgages. This allows borrowers to save more money for any unexpected emergencies that may come their way. It also frees up more cash for borrowers to invest.
What are the disadvantages of ARM Loans?
The most significant disadvantage to ARM Loans is that rates can rise significantly over the life of the loan, depending on the market's current volatility and terms of your loan. It's essential to understand all aspects of complicated ARM Mortgage Loans before taking one on. A shift in the real estate market can drastically change your monthly payment.
However, for the confident homeowner with significant savings, or the ability to budget carefully enough to account for potential market shifts, adjustable rate mortgages can save you thousands over the term of your lease. At US Mortgages, we pledge to find you a loan that will improve your family's financial situation or we won't do the loan.
Ready to get started on your ARM Mortgage from US Mortgages?
If you are looking for an ARM Loan, let us know how to get in touch with you online. You can also give us a call directly. If you'd like to get started on becoming prequalified for an ARM or another kind of loan, feel free to start our short form application or long form application online today!