Adjustable Rate (ARM) Mortgages
The Adjustable Rate Mortgage or ARM offer the lowest home loan interest rate available for 5/1 or 7/1 terms. ARMs tend to be best for the financially savvy borrower.
Adjustable Rate Mortgages can significantly reduce the cost of your mortgage by providing the lowest mortgage rate available
May be ideal if you plan to move or refinance in the next 5 or 7 years
While these products are not generally ideal for the first time home buyer they are ideal for the financially savvy borrower looking to purchase an investment property or second home
Remember, after the initial fixed-rate period, the rate of an Adjustable Rate Mortgage (ARM) may change once per year.