Fixed Period ARM Loans
Fixed Period ARMS (or Hybrid ARMs) are the new standard in mortgage lending, and it’s one of the most common of PFN’s lending programs. ARM stands for Adjustable Rate mortgage, meaning that the loan adjusts with current market rates. This type of loan offers a great option for homeowners who don’t plan on living in the home for more than 10 years. This is because ARMs tend to offer lower interest rates and monthly payments than a traditional 30 Year Fixed Rate. The downside of ARM’s comes with their instability after the fixed rate period has expired. If rates are very high when the period is up, you may be faced with a higher interest rate than the beginning of the loan. However, these loans will all contain what’s referred to as a cap. Rate caps designate the maximum amount the rate can increase to during certain periods of time. Fixed period ARMs come in a few options for their initial fixed rate: ten year, seven-year, or five years.
Schedule your free home loan consultation by calling (818) 936-3888 or by filling out our convenient “Call Me” form and Marc will contact you upon receipt.