A rate that can change

Adjustable-Rate Mortgages

An adjustable-rate mortgage generally begins with an initial rate period and may later adjust according to the loan's index, margin and caps. The initial payment should not be evaluated in isolation.

Know every part of the adjustment

Before choosing an ARM, review when the first adjustment occurs, how often later adjustments occur, the index, margin, caps and maximum possible payment.

Consider more than a short timeline

Moving or refinancing before adjustment is never guaranteed. Compare the ARM with a fixed-rate option under both expected and less favorable scenarios.

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General information is useful. A mortgage professional can help you evaluate the facts that apply to you.

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