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Tammy Bryan, Compass Realty of North Florida

Tammy Bryan
Office: (352) 498-2400
Cell: (352)356-1296
Fax: (352) 498-2403

Email:compassrealty@bellsouth.net

Address:
130 Main Street/ PO Box 154
Horseshoe Beach, FL 32648

Broker:James Butler



Adjustable Loans


Lower Interest at the Beginning

Adjustable-rate mortgage(ARM) loans provide a low interest rate for an initial payment period, making the initial monthly payments less than those a fixed-rate mortgage usually offers.

Adjustable Loans Reflection on payments

After the lower initial rate period, the ARM loan’s interest rate will adjust to a fully indexed rate, and it is likely that your rate and your payments will increase. If the rate goes up after the initial period, your monthly payments go up, so you want to be financially prepared to make larger payments.

ARM loans are available for a 30 year† term. In addition to the term, ARMs have different options for how long the initial interest rate will last before the rate can start to adjust. So, for example, you could get a 7/1 ARM, and your interest rate and payment would stay the same for 7 years before being open to annual adjustment.

When you consider ARM loans, find out how and when your rate can change, because those factors will determine how much your monthly payment is.

Terms Available

10/1 Adjustable-rate mortgage: A 10/1 ARM has a fixed interest rate for the first 10 years. After 10 years, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.

7/1 Adjustable-rate mortgage: A 7/1 ARM has a fixed interest rate for the first 7 years. After 7 years, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.

5/1 Adjustable-rate mortgage: A 5/1 ARM has a fixed interest rate for the first 5 years. After 5 years, the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.

Is this loan right for me?

A Good Choice if you:
Some Disadvantages of Adjustable-Rate Mortgages: