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Adjustable Rate Mortgage Loan

What are Adjustable Rate Mortgages?

An adjustable rate loan offers lower initial interest rates and monthly payments, making it a good option for those willing to accept the risk of rising interest rates and not staying in their home long-term. Good for borrowers expecting income growth who can afford higher monthly payments if interest rates increase.

Why choose an adjustable rate mortgage

  • Offers a lower initial interest rate and monthly payment.
  • Good for borrowers who do not plan to stay in their home for an extended period of time.
  • A good choice for borrowers who expect their income to increase over time.
  • Can be a more affordable option in the short-term.
  • Provides the opportunity to benefit from lower interest rates if they decrease.
  • Can be a good choice for borrowers who are willing to take on the risk of rising interest rates.
  • May have lower closing costs compared to fixed rate loans.
  • Can provide more flexible options for mortgage payments.
  • Can be a good option for those who want to keep their monthly payments as low as possible.

How adjustable rate mortgages work

  • The interest rate is not fixed and can change over time, usually annually.
  • The interest rate is tied to an index, such as the London Interbank Offered Rate (LIBOR) or the Cost of Funds Index (COFI).
  • The interest rate can go up or down based on changes in the index.
  • The interest rate is recalculated on a set schedule, such as annually or monthly.
  • The new interest rate is based on the current index plus a margin, which is a set percentage determined by the lender.
  • The rate and payment can change over the life of the loan.
  • There is a cap on how much the interest rate can increase or decrease over time.
  • There is often a lower initial interest rate and monthly payment compared to a fixed rate loan.

Interested in a Adjustable Rate Mortgage Loan?

Contact us! One of our mortgage specialists would be happy to answer all your questions and get you started with a great low rate today!

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At Cornerstone First Mortgage, LLC. we are dedicated to delivering high-quality customer service and offer an extensive range of home loan programs with competitive rates to deliver a solution that best fits the need of each client.

For Licensing Information go to:
www.nmlsconsumeraccess.org

NMLS ID #173855

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© 2024 Cornerstone First Mortgage, LLC. All Rights Reserved. NMLS ID #173855 Equal Opportunity Lender.

© 2023 Cornerstone First Mortgage, All Rights Reserved. NMLS ID #173855 Equal Opportunity Lender.