3 Things You Didn't Know About ARM Loans
ARM loans can be an excellent option for many homebuyers today, but they are often misunderstood. Here are three often overlooked things that homebuyers should know if they consider an ARM loan.
- ARMs are not the same as they were during the 2008 housing bubble - ARM loans are much more regulated than they used to be, with universal standards and uniform paperwork across all lenders that make it easy to compare and understand.
- There are caps on rate increases - There is always a maximum amount that your rate can rise, and your payment can increase. These include caps on how much the rate can change each time it adjusts.
- Rates will not always rise - If rates are lower during an adjustment period, your rate will fall. And with fixed-rate mortgages, the only way to reduce the rate is to refinance.
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* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.