Adjustable rate mortgage financing was created during a period of high interest rates as a viable alternative for prospective homebuyers who were otherwise unable to qualify for a fixed rate mortgage. The biggest feature of this type of loan is that the interest rate is not fixed and will follow market fluctuations.

    For the borrower, one of the most appealing features of an ARM, or adjustable rate mortgage, is that the initial interest rate is often much lower that of a fixed rate mortgage of the same value. In a fixed rate mortgage, the lender assumes some risk that if the market fluctuates and interest rates rise, their profit margin will be reduced on a lower interest mortgage financing. Because the interest rate on an ARM is free to move with the going market, the lender can offer a short term reduced rate as an incentive for borrowers to take out a loan.

    At regular intervals, called adjustment intervals, the interest rate will change to reflect the current index rate. This interval can vary greatly from loan to loan, from about every six months to three years depending upon the loan agreement.

    To get started now and get approved for mortgage financing please click here and fill out our mortgage financing application form. This will take only a minute and our certified mortgage finanign specialist will contact you to discuss options available to you.

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