Adjustable Rate Mortgages (ARMs)

An ARM can save you money on your loan, but there is a risk that market rates may increase during an adjustment period and make your monthly payments higher. However, you can set caps on your ARM. A periodic cap limits how much your rate can adjust at specified adjustment dates. A lifetime cap limits how much your rate can increase over the life of your loan. A payment cap limits how much your monthly payment can increase with each adjustment.

Eligibility

You must have sufficient income and credit history to qualify for an adjustable rate mortgage.

Pros And Cons

Pros

Cons

How long you plan to live in the home is important. For example, if you’re planning to live in your home for seven years, an adjustable rate mortgage may be more favorable.

But either way, contact us today to get pre-qualified. A CrossCountry Mortgage, Inc. licensed loan officer can help you to understand all your options and the expenses for which you will need to budget to purchase your next home.


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