An adjustable rate mortgage (ARM) may provide you with more flexibility as it typically has a lower payment than a traditional fixed rate mortgage due to the lower starting interest rate. This type of mortgage may be right for you if you are looking for the lowest starting payment or how long you plan to stay in your home. After the initial period, after 5 years for a 5-1 ARM, your interest rate and payment will adjust either lower or higher based on market interest rates. Then after the initial term, the adjustment occurs on an annual basis. There are periodic and lifetime interest rate ceiling caps to protect you from large fluctuations in the market. Talk with us today to see if this option is right for you.
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