Adjustable Rate Mortgage

Adjustable Rate Mortgage

An adjustable rate mortgage (commonly known as an ARM) features a lower initial interest rate for 5, 7 or 10 years. Following this initial term, your rate and monthly P&I payment can change annually based on prevailing interest rates. Advantages of a ditech adjustable rate mortgage include:

  • A lower rate and P&I payment during the initial term (though you may pay more in interest over the life of your loan)
  • The stability of a fixed monthly P&I payment during the initial term
  • Rate caps that limit how much your interest rate can increase annually and over the life of the loan
  • No prepayment penalty if you pay your loan off early

An adjustable rate mortgage may be right for you if:

  • You plan to relocate or refinance (again) in the next 5 to 7 years
  • You anticipate a major lifestyle change such as an increase in income
  • You are willing to accept the risk of future interest rate changes

Home Loan Specialist can help you decide which loan option is right for you.