ARM mortgage rates in Michigan can fluctuate, and that could have an affect on what type of loan you might want to pursue. Instead of trying to figure out what kind of loan will be right for you, why not just get in touch with Gem Home Loans instead? We have the experience and know-how to show you what kind of loan will be the best choice, and do so in language that’s easy to understand. Working with us might just wind up being one of the best decisions you’ll ever make.
An adjustable-rate mortgage (ARM) is a home loan that has an interest rate that changes from time to time. As a result, your monthly mortgage payment can change as well. Interest rates with an ARM are usually lower than fixed-rate mortgages. Then, after a period of time, the rate moves according to the movement of whatever index the ARM follows.
When you get an ARM, you’ll have a fixed interest rate for a few years. The most common type of ARM is known as a “5/1.” All this means is that the fixed rate will last for five years. After that, the rate can change one time a year. There are also 3/1, 7/1 and 10/1 ARM programs.
There are a lot of different indexes, which are basically interest rates that are published by neutral parties. The paperwork associated with your loan will spell out the index that your specific ARM will follow.
Regardless of the kind of mortgage you get, there will be some pros and cons. Here are the benefits of getting an ARM.
Here are some of the reasons why an ARM isn’t for everyone.
When you work with Gem Home Loans, we’ll make sure you have the information you need regarding ARM mortgage rates in Michigan. You’ll be completely comfortable with your final decision. Call (248) 780-1030 or use our online form to learn more.