An Adjustable Rate Mortgage (ARM) is a mortgage having an interest rate that gets adjusted over time based on the ongoing rate in the market. Generally, ARM initially starts with a lower interest rate compared to a fixed-rate mortgage with a high-interest rate, so it will be a perfect option if your main motive is to get the lowest introductory rates. After the initial period, rates fluctuate and your monthly payment get varies from time to time for a few years. You can take time to understand how ARM works so that you could prepare yourself if rates go up.
The Lowdown on Adjustable Rate Mortgages...
How adjustable mortgage loans in Texas works
ARM home loans are long-term having two different periods, which are Fixed Period and Adjustable Period.
- Fixed Period: At starting, there will be a fixed-rate period ( around 5,7, or for 10 years of the loan). In this period interest rate doesn’t change.
- Adjustable period: After that the interest rate varies and can fluctuate both up and down based on the changes in market rates.
Why Adjustable Rate Mortgage Home Loan?
An adjustable-rate mortgage is considered right for homeowners who want to enjoy the lowest possible interest rates initially. Most buyers, opt for a fixed-rate mortgage, especially with today’s low-interest rates. For some of the buyers, particularly those who move frequently, ARM is the best option. If you are not buying a home for forever then buying at ARM and selling it before the adjustable period starts or could refinance into another ARM can mean lower interest rates. Check out the adjustable rate mortgage calculator provided for more suggestions!
How do I apply?
To apply and get qualified you need to meet various requirements for mortgages. You should provide all the details and documents of your income, which help the mortgage lender determine how much mortgage payment you are qualified for. Additionally, having a good credit score is a plus point.
We are here to make it easier for you in San Antonio, Dallas, Austin, Houston, and many more cities in Texas and guide you starting from a FREE Adjustable Rate Mortgage Qualifier, where you can check for your qualification. We will guide you in choosing the right options whether you’re a first-time buyer or a seasonal investor.