What’s an ARM loan?
ARM stands for Adjustable Rate Mortgage. An ARM loan is unique in a few different ways. With the more common fixed payment loan, you only have one term. An ARM loan can change terms during different periods of the loan. For a 7/1 ARM loan, the loan rate is fixed for the 1st 7 years (84 payments). Each year after that, the rate can change. The change is based on the index that is used, plus a margin. The payment is calculated on the new interest rate and can change annually. Talk to a Loan Officer today to see if an ARM is right for you.