An ARM might be the loan term option that is just right for you.
An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment.
Adjustable-Rate Mortgage Highlights:
An ARM might be the right option for you if you plan on moving within 7 years since they feature lower introductory interest rates. If interest rates are expected to fall, a homeowner could potentially reduce their monthly payments with the lowered interest rates. Highlights of an adjustable-rate mortgage include:
Lower initial monthly payment
Possibility to qualify for higher loan amounts
Rates and Payments may decrease based on the index rate
Northpoint Mortgage offers sophisticated mortgages to borrowers who may not expect to be in the home for a long period of time. The adjustable rate mortgage is fixed for a period of time and can adjust thereafter. Your Loan Officer will be glad to assist you in determining which mortgage program will best fit your needs. Since the interest rate may rise over time, it is not recommended for every borrower.