Does an Adjustable Rate Mortgage Make Sense For You?

Key laying on a pile of cash. Information on adjustable rate financing.

Are you willing to risk potential issues down the road for saving money with an ARM in the short term? Adjustable rate mortgages can be great tools and big headaches. Just make sure you know the pros and cons.

Adjustable rate mortgage (ARMs) do serve a purpose and can be the perfect fit for many home buyers and homeowners. For example, let’s say you needed to relocate to a new community for work and had to list your existing home for sale. And, while that was happening, you were planning on buying a home in your new town. An ARM may help keep your payments low for a few years while you sell your existing property and get settled into work and your new house.

You should however keep in mind that there is additional risk when selecting an adjustable rate mortgage. Once that introductory period comes to a close you should be prepared to absorb an increase in payments and/or prepare yourself to refinance. In a depreciating real estate market, you should be especially careful as you may find yourself in a position where you cannot refinance out of an ARM due to the fact that your home may be under water (worth less than what you owe). This happened to thousands of homeowners throughout the Country in the early 2000’s.

Checking Current Adjustable Mortgage Rates

Looking for a low ARM refinance or home purchase adjustable mortgage rates? Use the rate survey displayed below to compare pricing and closing costs for a variety of ARM products from a handful of lenders and brokers serving your area. Adjustable rate mortgages (aka ARMs) offer a set introductory period where an interest rate is fixed. Once that set period elapses, the rate then adjusts either up or down depending up the loan’s margin and caps, and the current rate of the index which the loan is tied to. US treasury notes and the LIBOR are two popular indexes which many banking institutions currently use. Programs can and will vary by lender so be sure to discuss these factors with a mortgage professional and weigh the pros and cons of the various offerings.

Check ARM Rates With These Additional Lenders and Brokers

  • You can find adjustable mortgage home loan solutions with American Financial Resources including FHA ARM programs. AFR Mortgage is a mortgage lender which serves a multiple state footprint. You can reach the toll-free at 800-316-9508. NMLS#2826
  • Gateway Bank Mortgage has a variety of ARM refinance products and adjustable rate purchase loan programs to consider. They are a mortgage bank that assists consumers in MD, VA, NC, SC, GA & FL. Contact them today at 877-728-3569 for more information. NMLS#463089
  • American Bank has competitive adjustable mortgage rates for conventional and a variety of government back, low money down mortgage programs including FHA loans and VA mortgages. To request current interest rates, complete the Rate Quote Form or the Pre-Qual Form on their web site.
  • The Decker Group consists of a Texas based mortgage professionals offering competitive adjustable mortgage rates in both Texas and Oklahoma. To learn more about their products and services, call 972-591-3097. NMLS#119417

Note: If you are a mortgage lender or broker that offers ARM programs and would like to advertise on, please call 910-547-6910.