Life Changes, So Can Your Mortgage
Adjustable Rate Mortgage
An adjustable rate mortgage loan offers a fixed rate for a set number of years then it can change every 12 months after that over the course of the loan. Your principal and interest payment can also vary as the rate changes. This loan typically provides you with a lower cost for the first few years, and as a result, might be the better option if you don’t expect to keep the home long-term. Depending on the rate environment this may have advantages. It gives you more flexibility and a better opportunity to refinance in a few years. In the industry these loans are often called “ARM”s.