Adjustable Rate Mortgages
The flexibility of an adjustable rate mortgage may be the best choice. You have options regarding the Index and whether you want to lock-in a fixed rate period from 1 to 7 years.
Features and Benefits:
- Interest rate varies during the life of the loan in accordance to the index and time you choose.
- Most adjustable rate mortgages have established annual and lifetime interest rate caps with pre-determined change dates for the term of the loan. These features provide you with a safety-net in an increasing rate environment.
- Lower initial interest rates give you increased borrowing, while annual and lifetime interest rate caps increase your safety.