An Adjustable Rate Mortgage loan is a type of home loan in which the interest rate adjusts after a specific period, generally after3, 5, or 7 years. The common perception with ARMs is that they are risky, and many homeowners prefer the safety of a fixed rate mortgage, in which the interest rate remains fixed throughout the term of the loan.
However, the new age hybrid ARMs aim to negate the risk and also offer a variety of benefits. A hybrid Adjustable Rate Mortgage offers a loan at a fixed rate for the initial years of the loan term and only after the completion of the fixed rate duration, the rates start to adjust. Moreover, there are caps on the adjustments of the interest rates to protect the borrowers from paying more than a pre-specified percentage of interest.
Another major benefit of hybrid ARMs is that for the initial years, the interest rate that remains fixed is less than the interest rate offered by FRMs, which allows you to save thousands of dollars in that time period.
Types of ARMs offered by All Western Mortgage:
• 3/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 3 years and starts adjusting yearly after that.
• 5/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 5 years and starts adjusting yearly after that.
• 7/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 7 years and starts adjusting yearly after that.
Our ARMs are amortized over 30 years. To know more about our ARMs call us on 702-850-2790 or visit our website – www.awmlending.com now.
However, the new age hybrid ARMs aim to negate the risk and also offer a variety of benefits. A hybrid Adjustable Rate Mortgage offers a loan at a fixed rate for the initial years of the loan term and only after the completion of the fixed rate duration, the rates start to adjust. Moreover, there are caps on the adjustments of the interest rates to protect the borrowers from paying more than a pre-specified percentage of interest.
Another major benefit of hybrid ARMs is that for the initial years, the interest rate that remains fixed is less than the interest rate offered by FRMs, which allows you to save thousands of dollars in that time period.
Types of ARMs offered by All Western Mortgage:
• 3/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 3 years and starts adjusting yearly after that.
• 5/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 5 years and starts adjusting yearly after that.
• 7/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 7 years and starts adjusting yearly after that.
Our ARMs are amortized over 30 years. To know more about our ARMs call us on 702-850-2790 or visit our website – www.awmlending.com now.
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