With an adjustable rate mortgage the rate can change over the course of the loan. Mortgages available:

10/1 ARM, 7/1 ARM, 3/1 ARM, 1 Year ARM, 6 Month ARM, 1 Month ARM.

ARM loans give you the befit of a lower interest rate, in turn your monthly mortgage payment will be lower at the start of your loan. The interest rate can increase or even go down as the loan adjusts for periodic rate changes with bank rates. Its important to look for interest-rate caps. The life of the loan caps put a ceiling on much higher the rate can increase over the life of the loan. Some cases the rate can increase 6 points above the original rate. "Caps" are a guarantee from the lender  that you will not be required to pay more than a maximum interest rate. Annual  "caps " protects you from extreme changes the interest rate in any given year.

Advantages

•  Lower initial monthly payment
•  Lower payments over a shorter period of time
•  Rates and payments may go down if rates improve
•  May qualify for a higher loan amount

Disadvantages

     1. The loan rate can change over the course of the loan.

     2. More Risk involved.

     3. Payments may change over time.

     4. Potential for high payments if rates go up.                               

 I can Save you money! Call me today for a free quote......I guaranteed I will save you MONEY!

  Send mail to www@williamknight.net with questions or comments about this web site.
Copyright © 2003 William J. Knight/Loan Officer                 
Last modified: 08/02/03                                  

Click on the graphic to vote for this
page as a Starting Point Hot Site.

                 IRA Global Network - Small Business Consulting Services: Business Loans, Hard Money, Venture Capital, Business Plans And Securities Document Preparation For Start Up And Established Businesses.