We have all noticed that as rates rise, an Adjustable Rate Mortgage (ARM) solution becomes more and more of a demand in the mortgage industry. There has been a lot of buzz going around regarding ARMs, especially with initial interest rates that are typically lower than a fixed rate mortgage. This means that the ARM program maybe the mortgage solution that you need!
Adjustable Rate Mortgage (ARM) programs initially have a fixed rate, typically for the first five years. However, with an ARM program, your monthly mortgage payments vary depending on the current market rates. Review the following to figure out whether you’re a candidate for an ARM program.
Ideal Candidates for the ARM Program:
- People who are planning on selling their home:
ARM programs are exceptionally popular among people who are planning to sell their homes. With ARMs programs, you are usually given a 3 to 10 year time period with a guaranteed fixed rate. This offers temporary financial relief, which allows you to save some cash.
- Maternity leave:
ARMs are also ideal for people who take a maternity leave to tend to their families. Adding an addition to your family is expensive, so why not take advantage of the financial alleviation that an ARM program can provide you?
- Frequent refinancers:
ARM programs may also be the perfect mortgage solution for people who frequently refinance their mortgage. If your financial history shows that you’re refinancing your mortgage every 3 to 5 years, why take a higher interest rate home loan instead of an ARM? Through the ARM program you would have the lowest monthly payments.
- Going back to school:
It has become more common for people to go back to school for further education. Tuition can be super expensive causing a financial burden. ARM programs can assist you with lower monthly mortgage payments to ease your financial struggles for a short term period.
Ultimately, ARMs programs are a great choice if you need an intermediate/short term financial relief. There is an array of ARM options so make sure you consult with your lender and loan officer before making concrete decisions.
Are you still questioning whether the ARM program is the right mortgage solution for you? It’s okay, we understand the struggles. Just keep in mind that your lender is required to provide you with all the information you will need in refinancing or
purchasing your home. If you have any questions regarding your mortgage solution, please do not ever hesitate to share your concerns with both your ender and loan officer.
Shopping for the perfect mortgage for you is definitely not an easy process, but it can be! At Perennial Funding, our Loan Officers are highly experienced mortgage professionals that are ready to assist you through any financial burdens. Fill out our online secure form and one of our Loan Officers will reach out to you or give us a call at (888)-496-7291.
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