You’ve probably heard the term “Adjustable Rate Mortgage.” These loans are also known as variable-rate mortgages, or even floating mortgages. No matter what you call this type of loan, the formula is the same.
What makes them “adjustable, variable, or floating” is that at the beginning of the loan period, and for a set amount of time into the future, the interest rate will be at a fixed rate. Usually this is a low rate compared to other mortgage products. However, it’s important to note, rates will adjust after that fixed period of time. Exactly when will depend on the terms of your loan.
Different Types of Adjustable Rate Mortgages
There are different types of ARMs and they all have different features and terms. The first number always indicates the amount of time you can count on the rate to be consistent, or fixed. For example, a 5/1 ARM will have a fixed-rate for five years. A 2/28 ARM will be fixed for just two years and then be adjustable for next 28 years.
The Savvy Mortgage team is well-versed in these types of loans and can offer you their expert guidance about all factors you should consider. They will make sure you have all the information to decide which is the right approach to home ownership for you.
What You Can Expect as a Savvy Client:
Eileen, Tracie, and their team will work with you to help you identify the right loan for your needs.
Throughout the process you’ll receive the excellent customer service and support Savvy is known for.
Savvy will be by your side, guiding you every step of the way:
- Complete our simple loan qualifier survey
- We’ll send you customized information about your best options
- We’ll work with you to compare mortgage terms and rates to find the right one for you