{"id":1806,"date":"2021-03-18T18:34:57","date_gmt":"2021-03-18T18:34:57","guid":{"rendered":"https:\/\/baycoastmortgage.com\/?post_type=loans&p=1806"},"modified":"2023-07-18T17:29:21","modified_gmt":"2023-07-18T17:29:21","slug":"adjustable-rate-loans","status":"publish","type":"loans","link":"https:\/\/baycoastmortgage.com\/en\/loans\/conventional-jumbo\/adjustable-rate-loans\/","title":{"rendered":"Adjustable-Rate Mortgages (ARMs)"},"content":{"rendered":"
\n
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\n\t
\n\t\t
<\/div>\n\n\t\t
\n\t\t\t
\n\n\t\t\t\t
\n\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
\n\n\t\t\t\t\t\t\t \t\t\t\t\t\t\t\t \tLoans<\/a>\n\t\t\t\t\t\t\t \n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t

Adjustable-Rate Mortgages (ARMs)<\/h1>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n
<\/div><\/div>\n\n
<\/div>\n\n
\n\t
\n\t\t
\n\n\t\t\t\n\t\t\t
\n\n\t\t\t\t
As a full-service lender providing industry best solutions, BayCoast Mortgage is proud to offer adjustable-rate mortgages (ARMs) to aspiring homeowners.<\/div>\n\n\t\t\t \t
\n\n\t\t\t\t\n\t\t\t\t\n\n

What Are Adjustable-Rate Mortgages (ARMs)?<\/h4>\n\n\n\n

An adjustable-rate mortgage, or ARM, is a home loan that allows you to lock into a lower interest rate for the first few years of the loan, depending on your specific term, after which your rate is periodically adjusted.<\/p>\n\n\n\n

Adjustable-rate mortgages fall into two categories \u2013 conforming and non-conforming. <\/p>\n\n\n\n

Conforming ARMs are home loans that conform to and fall under FNMA (Fannie Mae) and FHLMC (Freddie Mac) guidelines.  Non-conforming ARM jumbo loans are for buyers seeking to purchase more expensive homes that require higher loan amounts not covered by conforming loan limits.<\/p>\n\n\n\n

An adjustable-rate loan will typically start with an initial interest rate that\u2019s lower than the current market rate for a comparable fixed-rate loan.  As time progresses into the life of an ARM loan, the rate will adjust, based on contract terms, market rates, indexes or buydown points.  While the rate will typically go up after the initial loan term expires, it can also occasionally go lower.<\/p>\n\n\n\n

You can use an ARM to finance a primary residence, secondary home, or investment property with one-to-four units. Usually, adjustable-rate mortgages are most attractive to short-term homebuyers who expect to resell the home before higher interest rates affect the loan. ARMs are also very popular among homeowners who plan to fully pay off their loans early while the interest rate is at its lowest.<\/p>\n\n\n\n

How Are Adjustable-Rate Mortgages Different from Fixed-Rate Loans?<\/h4>\n\n\n\n

Fixed-rate mortgages charge a set interest rate that won\u2019t change over the life of the loan. As a result, the biggest difference between these two loan types is that adjustable-rate mortgages have changing interest rates, while fixed-rate mortgages do not.<\/p>\n\n\n\n

What Are the Benefits of Adjustable-Rate Mortgages?<\/h4>\n\n\n\n

If you\u2019re interested in an adjustable-rate loan, you\u2019ll likely want to know about its advantages. Here are some of the benefits of adjustable-rate loans:<\/p>\n\n\n\n