Adjustable Rate Mortgages (ARMs) offer customization that many homebuyers may look for when purchasing a new home. In the beginning, the initial interest rate is typically lower than a comparable fixed-rate mortgage which translates to lower monthly payments and possibly qualifying for higher loan amounts. The initial interest rate is set for a specified period of time (from 3-10 years at Gateway) and then can go up or down annually based on market conditions.
Optimal for a wide range of homebuyers who seek lower initial mortgage payments, are comfortable with future rate adjustments; ideal for individuals purchasing a starter home, expect a reasonable and steady increase in their annual income, or plan to move in 5-7 years.
Primary residence, second homes and investment properties, single family and 2-4 unit properties, condos and townhomes, Planned Unit Developments (PUDs), and manufactured double-wide homes; maximum loan amount up to $2,000,000.
If you are worried about the rate going through your new roof, take comfort in knowing today’s Adjustable Rate Mortgages typically have an annual adjustment cap AND a lifetime cap to how high the interest rates can increase. Your rate doesn’t only go up, it can go down, too! If your chats about becoming a new homeowner start with “Can we afford it?” or “We only plan to be there for 5 years,” consider the advantages of an Adjustable Rate Mortgage.
Ready to get expert advice and determine what works best for your personal situation? Contact one of our local, caring mortgage professionals at a Branch Near You.