ADJUSTABLE RATE LOAN

WHAT IS AN ADJUSTABLE RATE MORTGAGE?

An adjustable rate mortgage (ARM) is a mortgage loan that may vary in monthly payment and interest rate depending on a change in an index. Typically, the initial rate is lower compared to a fixed rate mortgage, so for many borrowers, it could make homeownership more affordable. The risk of fluctuating monthly payments may be reduced with annual interest and lifetime interest cap ceilings.

ADJUSTABLE RATE MORTGAGE QUALIFICATIONS

Eligibility for an adjustable rate mortgage depends on the exact loan product you’ve selected as well as a number of parameters, including your debt-to-income ratio, credit score, income, employment status, and more.

WHO SHOULD GET AN ADJUSTABLE RATE MORTGAGE?

Adjustable rate mortgages may be a viable option if you:

PROS AND CONS OF AN ADJUSTABLE RATE MORTGAGE

PROS:

CONS:

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