Adjustable Rate Mortgage (ARM)

Adjustable-rate mortgages (ARMs) offer lower rates during an initial period (often 1-7 years). After the initial period, rates adjust based on the current market as represented by a specific index. Typically, caps are put in place to protect the borrower from drastic increases in the interest rate.



What is it?

•    Lower initial rates
•    May allow borrowers to qualify for a larger loan
•    Caps provide security against rapid rate increases
•    Choose 1, 3, 5, 7 or 10 years at a fixed rate prior to first adjustment
•    30-year terms
•    May be eligible for conversion to a fixed-rate mortgage

Best for homeowners who:

•    Are planning to move in a few years
•    Want a lower initial rate
•    Expect their income to rise over time

A Gershman Mortgage loan officer can help find the best mortgage for you. Call today, 1-800-GERSHMAN.