ARM loans are often the loan product of choice for borrowers (1) seeking to stay in a property for a predetermined period of 5-10 years, and (2) seeking to have more flexibility in the management of their cash flow.  During the initial fixed interest rate period of an ARM loan, the borrower’s payments will be lower than if the borrower had entered a traditional fixed rate loan with the same amortization period.

• The ARM loan approval process is similar to the fixed rate approval process—only you will have the benefit of a lower monthly mortgage payment when determining your prospective debt to income ratio.
• Down payments for FHA ARMs can be as low as 3.5%
• Less than perfect credit is acceptable

Below are some of the key benefits ARM loans offer.

• Upfront savings:With the lower rate and payment in the initial period, you’re free to invest more in your savings or potentially better position yourself for another move up in the future
• Flexibility of initial fixed period: You can typically select a three, five, seven or ten year period for which your interest rate will be fixed—giving you the ability to find the right loan for your financial plan
• Cap on the amount you could pay: Should you end up staying in your ARM past the fixed rate period, future rate adjustments will be capped

Who typically uses an ARM loan?

• Borrowers who expect to move in the future
• Borrowers who expect to have an increase in income before the end of the fixed rate period
• Borrowers seeking to purchase, renovate, and resell properties

Borrowers who plan to refinance (potentially into another ARM) before their loan adjusts

ARM loans are often the loan product of choice for borrowers (1) seeking to stay in a property for a predetermined period of 5-10 years, and (2) seeking to have more flexibility in the management of their cash flow.  During the initial fixed interest rate period of an ARM loan, the borrower’s payments will be lower than if the borrower had entered a traditional fixed rate loan with the same amortization period.

• The ARM loan approval process is similar to the fixed rate approval process—only you will have the benefit of a lower monthly mortgage payment when determining your prospective debt to income ratio.
• Down payments for FHA ARMs can be as low as 3.5%
• Less than perfect credit is acceptable

Below are some of the key benefits ARM loans offer.

• Upfront savings:With the lower rate and payment in the initial period, you’re free to invest more in your savings or potentially better position yourself for another move up in the future
• Flexibility of initial fixed period: You can typically select a three, five, seven or ten year period for which your interest rate will be fixed—giving you the ability to find the right loan for your financial plan
• Cap on the amount you could pay: Should you end up staying in your ARM past the fixed rate period, future rate adjustments will be capped

Who typically uses an ARM loan?

• Borrowers who expect to move in the future
• Borrowers who expect to have an increase in income before the end of the fixed rate period
• Borrowers seeking to purchase, renovate, and resell properties

Borrowers who plan to refinance (potentially into another ARM) before their loan adjusts