The Benefits of an Adjustable-Rate Mortgage:
Reduced Rates
Adjustable-Rate Mortgages commonly have the lowest possible mortgage rate. ARM rates, like that of a 5/1 ARM, can be nearly 1% lower than that of a 30-year fixed-rate mortgage. The 5/1 ARM rate would be fixed for five years, giving you the opportunity to save thousands of dollars in interest that you could use to pay off existing credit card debt, put towards retirement savings or save for you next investment. After 5 years, the first initial adjustment will take place. This adjustment can adjust up or down a maximum of 5 points, with every year following only 2 points with a life time adjustment of 5. The rate can also never adjust below a margin of 2.25%. All ARMs are structured over a full 30 year period.

You Plan to Sell the Home after Several Years
If you plan to sell the home before the Adjustable-Rate Mortgage reaches its adjustment period, you may be able to save more money that with a fixed-rate loan. For example, if a job transfer is likely, an ARM would be a better solution than a higher rate, 30-year fixed-rate mortgage. The lower initial rate of an ARM can be a good strategy for professionals who relocate regularly, homeowners who plan to upsize or downsize, and anyone who will live in their home for just the initial fixed term.

You Want a Larger Home
Adjustable-Rate Mortgages often times do not require as large of a down payment as a fixed-rate loan would. If a borrower chooses to apply for an ARM, they may be able to buy a more expensive house then they typically would have been able to afford.

Call 888-733-4224 to get your personalized rate quote for an adjustable-rate mortgage or apply now. See today's low Orange County adjustable-mortgage rates!