Paramount Equity Mortgage offers adjustable rate mortgages that traditionally have a lower rate for the first three, five, or seven years. While there are many advantages to an adjustable rate mortgage, it is important to consider your financial goals and the current market situation.
Adjustable Rate Mortgage (ARM) Benefits:
- Your interest rate is fixed for the first three, five, or seven years of the home loan, depending on your program.After the initial fixed period, the loan adjusts per the program and market.
- The ARM loan is amortized over a 30-year period.
- ARMs are perfect for borrowers looking for the lowest rate possible for a set period of time.
- ARMs are very popular with homeowners planning on moving or refinancing in the near future.
7 Year Adjustable Mortgages
Out of the 1, 3, 5, 7, and 10-year adjustable rate mortgages we offer, the most popular is the 7-year ARM. The 7-year ARM is a loan with a fixed interest rate for the first seven years. On the eighth year, the interest rate adjusts to a predetermined margin. Provided that scheduled payments are made according to plan, the loan is paid off in 30 years.
Hybrid Adjustable Mortgages
A hybrid adjustable mortgage is a loan with a fixed interest rate that adjusts after a certain period. In some cases these loans are described as 3/1, 5/1, 7/1, or even 10/1 ARMs. A 3/1 ARM, for example, is fixed for the first three years and then adjusts in 1-year increments.
Interest-Only Adjustable Rate Mortgages
Interest-only adjustable rate mortgage programs allow you to pay only the interest on the loan for a set number of years (typically three, five or seven), allowing you to pay less at the beginning of the loan.
Get a Free Quote on an Adjustable Rate Mortgage today!
For more information on an adjustable rate mortgage, contact a Financial Specialist today for a free quote. We can help review your situation and determine the best option for your future.
