Types of Adjustable Rate Mortgages-Traditional Adjustable Rate Mortgages are home loan programs that amortize over 30 years and offer interest rates that periodically adjust. Consider this type of adjustable rate mortgage if you:
- Are looking for a fully amortized home loan
- Do not plan to stay in the home long term, but rather between 3-10 years
- Wish to qualify for a larger home loan amount
Hybrid Adjustable Rate Mortgages are home loan programs that have an initial fixed rate period, after which the home loan converts to an adjustable rate. Consider this type of adjustable rate mortgage if you:
- Are looking for a low fixed rate for a specified period of time
- Do not plan to stay in the home more than 3-10 years
- Wish to qualify for a larger home loan amount
Interest-Only Adjustable Rate Mortgages are home loan programs that feature a monthly payment that is applied to the interest portion of the home loan, freeing up the amount that would typically go toward paying off the principal. Consider this type of program if you:
- Are looking for a lower monthly payment
- Wish to qualify for a larger home loan amount
- Wish to free up additional monthly funds for investing
- Do not plan to stay in the home more than 3-10 years
Posting Komentar