An adjustable-rate mortgage (ARM) has a variable interest rate applied to your VA, FHA, or Conventional loan’s outstanding balance for the entire length of your loan. Usually, the interest rate is fixed for a period of time at the beginning, referred to as the “initial rate period,” which can offer you the lowest rates and payments compared to fixed-rate mortgages. At Forthright Funding, this initial, low introductory rate is set for the first 5, 7, or 10 years of your adjustable rate loan, depending on you and your needs. After that period expires, the interest rate may change based on movement of the market’s interest rate index for the remainder of your loan’s 30-year term.
While your payments may change each time the rate resets, it does so on the years and balance that remain on your adjustable rate mortgage rather than on the initial loan amount. This can help minimize the difference between your previous payment and your new one.
1. You prefer not to hassle with the time and trouble of refinancing.
2. You know you’ll be moving at some point (starter home or relocating for other reasons).
3. You’re able to budget for a possible interest-rate hike.
You’re a good candidate for an ARM if you know that you’ll be able to afford to pay more each month in the event interest rates go up. There is a cap, or maximum rate hike, associated with every ARM. Forthright Funding’s adjustable-rate mortgage calculator can help you determine your maximum monthly payments.
For more information on ARM rates and applying for a home loan, contact one of our mortgage specialists at (855) 351-9522.
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At Forthright, we will always treat you like a neighbor and not like a number. So, if you're ready to put down some roots or transplant the ones you have, please feel free to give us a call at
23150 N Pima Rd
Scottsdale, AZ 85255
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