3, 5, 7, and 10-Year Adjustable Rate Mortgages
Your principal and interest payments will be fixed for a period of time: 3, 5, 7 or 10 years. During the initial fixed period of the loan, you will generally get a lower monthly payment and rate than with a traditional 30-year fixed mortgage. After the initial fixed period, your loan has an adjustable rate based on the index of your choice.When to choose this type of loan:
| · | If you want monthly payments that are generally lower than for a traditional mortgage | |
| · | If you plan to keep your loan for ten years or less, or if you are uncertain how long you will keep your loan | |
| · | If you plan to use your home equity within seven years | |
| · | If you want the security of a fixed rate but not lose the savings that an ARM offers |
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