An adjustable-rate mortgage loan (ARM), also called a variable-rate mortgage loan, is a loan with a changing interest rate. The initial interest rate is fixed for a particular period of time, and then periodically – often every year or every month – it changes.
These loans initially have a low, fixed interest rate, before they change. The rate is based on an index (i.e. Federal Funds Rate, Libor Rate, etc.) plus percentage points added by the lender.
An adjustable interest rate initially tends to be lower than a fixed interest rate.
Who Should Consider an Adjustable-Rate Mortgage Loan?
This loan may work well for anyone who plans to pay off the entire loan (whether by refinancing or selling the property) before the rate changes. It may also be a good choice for anyone who won’t negatively be affected when the rate changes.
What We Offer
Extreme Loans offers various types of ARMs. These can be first or second mortgages. The fixed period of time can be 1, 3, 5, 7 or 10 years before the rates adjust.
Your Property is Ineligible for a Refinance or Cash-Out Refinance If…
…it was listed for sale within the previous six months of the date you apply.