Vocabulary: Adjustable Rate Mortgage (ARM)

Adjustable Rate Mortgage (ARM).png
Adjustable Rate Mortgage (ARM).png

Vocabulary: Adjustable Rate Mortgage (ARM)

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πŸ”Ž What is an Adjustable Rate Mortgage (ARM)? πŸ‘πŸ’°

An Adjustable Rate Mortgage (ARM) is a home loan with an interest rate that adjusts over time. Unlike a Fixed Rate Mortgage, where the interest rate stays the same for the life of the loan, an ARM typically starts with a lower fixed rate for a set period (e.g., 5, 7, or 10 years). After that, the rate can fluctuate annually based on market conditions.

πŸ’‘ Why choose an ARM?
βœ… Lower initial interest rate compared to fixed-rate loans
βœ… Ideal for buyers who plan to sell or refinance before the adjustment period
⚠️ Monthly payments may increase if interest rates rise

Considering an ARM or wondering if it's the right option for you? Let’s chat! πŸ“©

#BHGRE #WostalRealty #NobodyKnowsHomesBetter

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