Recently, Adjustable Rate Mortgages (ARMs) have been becoming more popular due to standard mortgage rates increasing with the buying environment.
SouthPoint Home Mortgage offers buyers a number of ARM options as part of our in-house loan products. There are a number of reasons why ARMs are an attractive loan product, even with foregoing a fixed interest rate.
With an ARM, buyers get a lower interest rate than your typical 15 or 30 year mortgage, lower closing costs, and more flexibility. ARMs are a good loan for someone searching for a home in which part of the property also contains tillable land, as well as other real estate loan options that don’t conform to the standards of a fixed interest rate loan product.
Adjustable Rate Mortgages have been popular among our members when seeking out short-term loans because it allows them to stretch out the term of their loan to make monthly payments more affordable.
While these loan products do have an adjustable interest rate component, you’re protected against surprises that a typical balloon loan would bring. You will know with the first set of disclosures what your minimum and maximum payments will be over the life of the loan because there are set caps and limitations to what the rates can decrease or increase to.
SouthPoint Home Mortgage offers 3/1, 7/1, 5/5 and 10/1 ARMs. When you consider that the average home buyer is only in their home for five to seven years, an ARM can be a very attractive option.
The application for this type of loan product is the same as a traditional loan and can be made online, over the phone or in person with one of SouthPoint Home Mortgage’s experienced Mortgage Loan Officers.