Affordable rates, lower monthly payments
The Adjustable Mortgage Rate (ARM) is a home loan with variable interest rates. The initial interest rates in this loan program remain low, which keeps the monthly installments low and affordable. The interest rate in ARM stays low and fixed for a set period of time – 5 or 10 years – after which the rates keep fluctuating as per the market conditions.
The low initial interest rates make it a great choice for borrowers who are planning to sell their house within the first 10 years of their purchase or who have the ability to repay their loan quickly.
Highlights
Ideal For
Highlights
Minimum 3.5% to 5% down
Requires a minimum FICO® Score of 580
Ideal For
- Borrowers who want to live in the house for short term
- Borrowers who have the ability to repay their loan quickly
