Adjustable Rate Mortgage loan is a type of home loan in which the interest rate gets adjusted after a specific period, which generally is of one year. The common perception with ARMs is that they are risky business and many homeowners prefer the safety of a fixed rate mortgage, in which the interest rate remains fixed throughout the term of the loan.
However, the new age hybrid ARMs aim to negate the risk and also offer a variety of benefits. A hybrid ARM offers a loan at fixed rate for the initial years of the term and only after the completion of the fixed rate duration, the rates start to adjust. Moreover, there are caps on the adjustments of the interest rates to protect the borrowers from paying more than a pre-specified percentage of interest.
Another major benefit of hybrid ARMs is that for the initial years, the rate of interest that remains fixed is less than the interest rate offered by FRMs, which allows you to save thousands of dollars in that time period.
Types of ARMs offered by AWM Lending:
• 3/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 3 years and starts adjusting yearly after the completion of 3 years.
• 5/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 5 years and starts adjusting yearly after the completion of 5 years.
• 7/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 7 years and starts adjusting yearly after the completion of 7 years.
The term for all these types of ARMs is 30 years. To know more about ARMs call us on 702-850-2790 or visit our website.
However, the new age hybrid ARMs aim to negate the risk and also offer a variety of benefits. A hybrid ARM offers a loan at fixed rate for the initial years of the term and only after the completion of the fixed rate duration, the rates start to adjust. Moreover, there are caps on the adjustments of the interest rates to protect the borrowers from paying more than a pre-specified percentage of interest.
Another major benefit of hybrid ARMs is that for the initial years, the rate of interest that remains fixed is less than the interest rate offered by FRMs, which allows you to save thousands of dollars in that time period.
Types of ARMs offered by AWM Lending:
• 3/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 3 years and starts adjusting yearly after the completion of 3 years.
• 5/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 5 years and starts adjusting yearly after the completion of 5 years.
• 7/1 year adjustable rate mortgage: The interest rate remains fixed for the initial 7 years and starts adjusting yearly after the completion of 7 years.
The term for all these types of ARMs is 30 years. To know more about ARMs call us on 702-850-2790 or visit our website.
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