FLEXIBLE
Adjustable Rate Mortgage
Starts with a lower fixed rate for an initial period (3, 5, 7, or 10 years), then adjusts periodically based on market index rates.
Low Initial Rate
Initial fixed period
3-10 yrs
5/1 ARMS is most common
Starting rate
Lower
Than comparable fixed rate
Rate after fixed period
Adjusts
Typically annually
Best for
Short-term
Plans to sell or refi
WHY BUYERS LOVE IT
Lower initial rate mean lower payments early on
Smart if you plan to sell or refinance vbefore the rate adjusts
Rate caps limit how much it can increase at each adjustment
More purchasing power upfront for the same payment
THINGS TO CONSIDER
Rate and payment can increase after the fixed period
Less predictable long-term - not ideal if staying put for decades
Ideal for: Buyers who plan to sell or refinance withing 5-7 years. those expecting income to grow, or anyone who wants maximum purchasing power now with a shorter time horizon.
Standard Mortgage Capital LLC
dba Rize Mortgage
NMLS 1604663
Contact Me
Located in Massachusetts
Licensed in MA and RI
Rize Mortgage
53 NW 100th Ave
Plantation, FL 33324
774-240-4240
Privacy Policy Terms of Use Copyright Aisha Home Loans