Adjustable Rate Loans

With an adjustable rate mortgage (ARM), you can lower your monthly mortgage loan payment because mortgage rates for ARMs are usually lower than traditional fixed rate programs. If you plan on selling or refinancing your home in less than 10 years, then an adjustable rate mortgage loan may be right for you.

Loans with adjustable rates have become somewhat less popular in recent years, but they remain an excellent option for many homeowners. An adjustable rate mortgage offers a fixed rate for a period of time, most commonly 3, 5, 7, or 10 years. After the introductory period ends the interest rate for the loan will adjust up or down depending upon the current rate of the loan's index plus the loan's set margin. The benefit is that the initial rate is generally lower than a comparable fixed-rate loan (although this is not always the case). To find out what today's low ARM rates are, request a quote from Western Pioneer Financial. Apply online today!