An Adjustable Rate Mortgage or ARM is a loan type that comes with an interest rate that can vary or change over time. Typically these products have a short fixed rate period ranging anywhere from 3-10 years and then enter a variable period for the remainder of the loan. Once the interest rate becomes variable, it is determined by one of the major financial indices of the market. Since the initial interest rates on ARMs are usually much lower than that of Fixed Rate loans, many borrowers choose the ARM product to have a lower monthly payment up front and save money on interest.
In order to obtain an Adjustable Rate Mortgage, you will either be looking to purchase a home in the near future or refinance a home that you currently own. If you are looking to make a new home purchase, the first step of this process is to get pre-approved. If you are looking to refinance your home, the requirements will differ slightly from a purchase. Speaking to one of our licensed loan officers will give you the education you need to make an informed decision so you can get your current mortgage refinanced.