Life Changes, So Can Your Mortgage
Adjustable-Rate Mortgage
An adjustable-rate mortgage loan offers a fixed rate for a set number of years then it can change every 6 months after that over the course of the loan. Your principal and interest payments can also vary as the rate changes. This loan typically provides you with a lower cost for the first few years, and as a result, might be the better option if you don’t expect to keep the home long-term. Depending on the rate environment this may have advantages. It gives you more flexibility and a better opportunity to refinance in a few years. In the industry these loans are often called “ARM”s.
