What should I know about ARM before applying for one?

Probably too much to cover here...arms already set adjustment caps. Though I would want to discuss why your choice in an ARM. The average purchase does not benefit by using an arm program. Jumbo loans could be the exception. Feel free to contact me here: www.dpaladin.com or 562.261.5500.

My simple response to ARM mortgage loans is this... If you are pretty sure you will be in the home for less than the first adjustment date, it is a no brainer. For example, if you take a 7-yr ARM (fixed for the first 7-years, then adjusts each year), and you are sure you will be in the home less than 7-years. If you are considering an adjustable rate mortgage because you can't really afford the payment of a standard 30-yr fixed, or if you would be unable to swing the loan if it adjusts higher, it is the wrong loan for most people. I lend in FL, MN, WI, IA, ND, SD. | Cambria Mortgage, NMLS 274132 | https://www.cambriamortgage.com/mortgage-member/joemetzler/

thanks - you should know and understand exactly how an ARM works and you know what the index/ margin / rate caps are for any arm you are considering ...right now the rates avaiable on an arm arent that much lower than what is avaialble for a 30 yr fixed loan ....if you think you will own the property and still have the loan open after the arm rate/ payment adjustment sate - the ARM is likely not a great option to consider