Adjustable-Rate Mortgage

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Street Address 4750 S. Biltmore Lane, Madison, WI
City Madison
ZIP/Postal Code 53718
State Wisconsin
Country United States
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Adjustable Rate Mortgage Definition – Providing Flexibility for Homeowners

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment.

Adjustable-Rate Mortgage Highlights

An ARM loan might be the right option for you if you plan on moving within 7 years since they feature lower introductory interest rates. If interest rates are expected to fall, a homeowner could potentially reduce their monthly payments with the lowered interest rates. Highlights of an adjustable-rate mortgage include:

  • Lower initial monthly payments
  • Possibility to qualify for higher loan amounts
  • ARM Mortgages Rates and Payments may decrease based on the index rate

If you are interested in an adjustable rate mortgage, please locate your loan originator.

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