You could save thousands vs. a traditional fixed rate loan. Adjustable Rate Mortgages (also known as ARM loans), are typically characterized by a lower fixed rate to start, then goes into an “adjustable” mode, where the rate fluctuates based on various market indicators. The benefit is possibly a lower rate (depending on market variables), the risk is your payment will fluctuate, which could go up or down.
ARM loans are not suitable for all borrowers. However, custom-fitting an ARM to a customer whose situation requires it, offers the customer lower rates and payments than those of fixed rate loans. Typically, these loan products are for shorter-term situations, such as a homeowner that will be relocating in the next few years or a real estate investor who plans to sell their investment in the near to mid-term future. ARM loans are great loans for the right situation.
Call and discuss whether or not an ARM loan is the right fit for you. You need a professional from ENG Lending on your side to help make these decisions.
