"While shopping for a mortgage, I keep hearing the word ARM. What is an ARM and why would I need one?"
There are more risks associated with adjustable rate mortgages. Payments on an adjustable rate mortgage can possibly increase over time due to increasing rates.
An Adjustable rate mortgage is a mortgage type that allows a person to have a lower interest rate at the beginning of the loan, and after a specified time, the rate will adjust based on the type of mortgage loan it is.
If you are concerned with mortgage payments rising on an ARM Adjustable Rate Mortgage, there is no better time than the present to do something about it. Fixed rate mortgages are available with surprisingly low payments, some even with "cash flow" minimum payment options, allowing you to preserve the payment flexibility of an Option ARM and obtain the security of a fixed rate for up to 30 years. For more information, please email us at [email protected] and please be sure to mention which State your property is located in, how much you owe on your current mortgage, and how much you believe your home is worth so we can better assist you in evaluating your fixed rate mortgage options.