How Adjustable Rate Mortgages Work
With an adjustable-rate mortgage, your interest rate is fixed for a specific period. Once that time period is over, your interest rate could possibly change yearly depending on the market. In other words, your monthly mortgage payment can fluctuate up or down each year. Your interest rate won’t go up usually by more than 5% of the starting rate throughout the remainder of the loan.
Some popular options are 5/1 and 7/1 Adjustable Rate Mortgage (ARM), where your interest rate is fixed for 5 years and then adjusted every year after that. The loan is usually amortized to 30 years.
Different Types Of Adjustable Rate Mortgages | Guaranteed Rate in Tampa FL
You could obtain an adjustable-rate mortgage with an FHA, VA, USDA, Conventional, and Jumbo loans.
Ways You Can Save With An Adjustable Rate Mortgage
- Your beginning interest rate is usually lower than other kinds of loans
- Monthly mortgage payments are more affordable and cost-efficient during the first years, while your income may increase with time, giving you an opportunity to afford a higher payment in the future if rates increase after the locked period.
- Down payments can be as low as 3% on a general home loan purchase.
- Refinance up to 90% of your current primary home’s value.
The Benefits of Getting a Loan From Tampa Bay Home Mortgage
- You are able to complete your application completely online with live help.
- Our home loan experts are available via text, email, and telephone to assist you.
- Our great customer service continues even after you close.
- You can manage your mortgage online after you close. Also, there are no hidden fees.
Why Choose Tampa Bay Home Mortgage
Tampa Bay Home Mortgage is ready and willing to provide quality service to those in need. We treat each need in accordance to the person and their needs. Choose us today!