Adjustable Rate Mortgage (ARM)
When choosing a mortgage solution, it’s important to think about what you’re planning for the upcoming years. Is the home you’re buying a long-term home? Or do you plan on living in it for a short time before upgrading? If the latter is your plan, an Adjustable-Rate Mortgage is something worth considering. Many of our clients have found that an ARM is a cost-effective way to buy a home they’re only planning to live in for approximately five to seven years.
Is an adjustable-rate loan right for you?
ARMs give homebuyers a lower rate, which may result in lower monthly payments. The rate stays the same for a determined number of years, then changes according to the market conditions at the time. Interest rate caps will make sure the rate won’t go over a specified amount. Since ARMs aren’t locked at one rate, they can greatly reduce the cost of the loan – potentially by thousands of dollars.
ARM loans are not locked into one interest rate, making it a flexible option to reduce the cost of your mortgage. After a certain number of years, in which the rate remains fixed, your interest rate will shift based on the market. Interest rate caps are put in place so that your rate can only increase to a specified amount.
Benefits of an adjustable-rate loan
- Low initial rate, resulting in lower monthly payments
- Allows you to refinance or sell your home in a predetermined number of years
- More financial freedom gives you the potential to pay off other debts or loans or save for a big purchase – like your next home
- Gives you the ability to refinance up to 95 percent of your home because you can put as little as 5 percent down (for FHA, 3.5 percent)
Why choose Lenox/WesLend?
At Lenox/WesLend Financial, we understand our clients have varying needs. This is why we offer the ARM option. Through the help of our professional mortgage advisors, you are able to choose an adjustable plan designed for you. Our mortgage process is easy, efficient and ends with you getting a mortgage solution with costs you are comfortable with.
See your goals through
Apply with Lenox/WesLend at today’s low rates! Take advantage of low-cost options, personalized customer service and achieve your homeownership goals, whatever they may be.
We offer the following options for adjustable-rate mortgages: