Adjustable Rate Mortgage
More flexibility for needs.
An adjustable-rate mortgage (ARM) are popular loans when the prime rate (the amount the U.S. government charges lending institutions to borrow money) is low. When this occurs, the interest you pay for an ARM is typically lower than a fixed-rate mortgage. However, the cost of these loans is usually adjusted every six months. So if interest rates rise, so will your monthly mortgage payment. For borrowers looking for a short-term loan during a period of low interest rates, an adjustable-rate mortgage may be advantageous. Lookout Loans provides many different ARM options including:
3/1 ARM: Same for 3 years, then adjusts annually
5/1 ARM: Same for 5 years, then adjusts annually
7/1 ARM: Same for 7 years, then adjusts annually
10/1 ARM: Same for 10 years, then adjusts annually
Your mortgage interest rate remains the same for an initial period of time (typically 5, 7, or 10 years), then adjusts very year.
- Initial interest rates are often better than fixed-rate mortgages
- Offers flexibility if you plan to move or refinance in the near future
- 5% down payment
- Good credit (FICO score of 660 or higher)