Learn About Adjustable-Rate Mortgages
An adjustable-rate mortgage may offer an initial rate period followed by changes to the rate and payment. TGBMC can help you compare an ARM with a fixed-rate option using both the initial costs and the potential later payments.
How an ARM Can Change
An adjustable-rate mortgage generally has an initial rate period followed by adjustments based on its index, margin and contractual limits. An introductory rate may be lower than a comparable fixed rate, but that is not guaranteed.
Review the Payment Risk
Ask when the first adjustment occurs, how often later adjustments occur, and how high the rate and payment could rise. Caps limit rate changes; they do not guarantee an affordable payment. Taxes and insurance can also change.
Compare With a Fixed Rate
Qualification depends on the loan program, lender and full application. Do not assume that selling or refinancing before an adjustment will be possible. Compare both the initial payment and the potential later payment with your budget.
Discuss the Tradeoffs
Ask a TGBMC home loan advisor, call (469) 351-1081, or start your secure application.
An inquiry is not a loan approval or rate lock. Use the secure application process for financial documents.
Official resource: Learn more about this program.
At The Good Buy Mortgage Company, we can help find the perfect ARM for you and your specific needs. Contact us today!
