adjustable rate mortgage loans

Adjustable Rate Mortgages

Adjustable rate mortgages (ARM) initially come with rates lower than a fixed rate mortgage but periodically rise or fall, depending on the market. It's lower initial rate can help you qualify for a larger mortgage loan. Arm loans feature an adjustable "cap" or limitation on how much the interest can go up or down. This helps limit excessive increases in your monthly payment. If you know your income will rise to keep pace with an Arm's periodic adjustment and you plan to move in a few years, an Arm could be a good choice.

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Conventional Loans: These loans are not insured or guaranteed by the federal government.

Government loans: These types of loans consist of VA (for veterans) and FHA (first time home buyer, troubled credit, little or no money down) Loans

Fixed rate mortgage Loan (FRM): Interest rate and monthly mortgage payments remain the same for the duration of the loan.

Adjustable rate mortgages (ARM): Interest rate and monthly mortgage payments fluctuate over the period of the loan.

Balloon Loans: A short-term fixed-rate loan with low payments for a set number of years and one large final balloon payment of the remainder of the principal.