:: Adjustable Rate Mortgage - ARM
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. But with an ARM, the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.

Lenders generally charge lower initial interest rates for ARMs than for fixed-rate mortgages. This makes the ARM cheaper than a fixed-rate mortgage for the same amount at least at the beginning. 

With an ARM, you could also qualify for a larger loan because lenders sometimes make the decision about whether to extend a loan on the basis of your current income and the first year ’s payments.

Moreover, your ARM could be less expensive over a long period than a fixed-rate mortgage —for example, if interest rates remain steady or move lower.

However, you have to measure the risks too. For example, an increase in interest rates would lead to higher monthly payments in the future.

It ’s a trade-off —you get a lower rate with an ARM in exchange for assuming more risk.

:: Great rates... Excellent service
At IV Alliance Mortgage, we can help you get the solution that works best for you. Our team will guide you though the process and provide the insight and analysis of professionals so you get the loan that is right for you.

Call us now and find out if an adjustable rate mortgage is right for you.