Consider an Adjustable Rate Mortgage when planning on the time you will stay in your home.

An adjustable rate mortgage (ARM) gets its name from the fact that it connects to an economic index which directs whether it goes up or down. The index guide tells us how to measure interest rate changes and the adjustment period is the time between those changes.

ARMs are a worthwhile consideration when you consider that the initial interest rate for one is lower than a fixed rate mortgage, where the interest rate remains the same during the life of the loan. A lower rate means lower payments, which is ideal if you are planning to sell within five years. The lower rates could also get you a significantly larger loan. But this isn’t just for the short-term borrower. New homeowners who expect their income to rise over time enjoy the small upfront fees as a grace period until their income allows them to cover any rate increases. Of course, some Direct Capital Funding ARMs are convertible to a fixed-rate mortgage. Call 1-805-222-4608 to set up a meeting to talk about your adjustable rate mortgage; get funding or refinance with an existing loan.