Regular Arms

The Traditional ARMs offer you all the features of a fixed-rate loan combined with the value of an adjustable rate mortgage. Start with an initial low fixed rate for 3 or 5 years.

ARM stands for Adjustable Rate Mortgage , what does that mean?, well it means the interest rate charged to you by the bank will change during the life of the loan according to market conditions. But wait!, there is an initial period on wich the interest will not change and it may be, depending on the selected ARM, from one month, to seven years. This means that during that initial period the rate is FIXED and only after this initial period is over the rate will start adjusting

The rate will adjust annually. Periodic rate caps determine the maximum allowable increase or decrease when the rate changes, and a lifetime cap determines the maximum allowable increase in rate over the life of the loan.

Advantages
Gives you set payments for a specific period of time
Low qualifying rates
Affordable home financing

Consider a Traditional ARM If:
You want the stability of a low fixed rate for a set period of time.
You prefer to keep extra cash on-hand for investing or other needs.
You're looking for a fully-amortizing product.
You intend to stay in the home for 7 years or less.

Variations
30 year terms
3 and 5 year initial fixed rate period before adjusting.

What does that mean?

ARM stands for Adjustable Rate Mortgage , what does that mean?, well it means the interest rate charged to you by the bank will change during the life of the loan according to market conditions. But wait!, there is an initial period on wich the interest will not change and it may be, depending on the selected ARM, from one month, to seven years. This means that during that initial period the rate is FIXED and only after this initial period is over the rate will start adjusting