What is an ARM?

ARM stands for Adjustable Rate Mortgage, this means that the interest rate you pay to the bank will change during the life of the loan according to market conditions. But wait! There is an initial period on which the interest is fixed and it may be, depending on the selected ARM, from one to five years.

• The Traditional ARM offers you all the features of a fixed-rate loan combined with the value of an adjustable rate mortgage, these rates tend to be lower than your typical 30 year fixed term options.

• 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 keep the home for 7 years or less.

– Variations

– 1, 3 and 5 year initial fixed rate period before adjusting.