Paramount Equity Mortgage offers adjustable rate mortgages that traditionally have a lower rate for the first three, five or seven years. There are many advantages to an adjustable rate mortgage but 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, depending on the program and the market.
- The ARM loan is amortized over a 30-year period.
- ARM’s are perfect for borrowers who are looking for the lowest rate possible for a set period of time.
- ARM’s are very popular with homeowners who are planning on moving or refinancing in the near future.
Hybrid Adjustable Mortgages
A hybrid adjustable mortgage is one in which the mortgage is fixed over a certain period and then adjusts for the remainder of the loan. In some cases, these loans are described as 3/1, 5/1, 7/1, or even 10/1 ARMs. For example, a 3/1 ARM would be fixed for the first three years and then subsequently would adjust 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 years). This allows you to pay less at the beginning of the loan.
For more information on an adjustable rate mortgage, contact a Financial Specialist today for a free quote! We can help you review your situation and determine the best option for your future.
