An adjustable-rate mortgage or ARM has a variable interest rate. The rate is locked in for a shorter period of time. Once that predetermined time expires, the interest rate can change every year based on the current market.
The ARM can feel like a gamble if you plan on living in your home for longer than the rate is locked in. Your mortgage advisor at Stampfli Mortgage can help you determine if this is a good option for you.
Benefits of an Adjustable-Rate Mortgage:
- Your initial interest rate will likely be lower than a 30-year fixed rate.
- Your initial monthly payments will likely be lower than with a 30-year fixed rate.
- You could save even more money if interest rates drop over time.
- You can refinance if you are concerned about rising interest rates.