Adjustable Rate Mortgage (ARM)
Greater Nevada Mortgage Services takes pride in taking time with all homebuyers to carefully plan—and execute—a mortgage strategy that best fits their situation. One option is an adjustable rate mortgage.
An ARM can provide greater buying power and lower monthly payments up front. But after a pre-set period, the interest rate can adjust annually. There are times when an ARM is advantageous. Talk with us to see if this is for you.
- Lower initial interest rates
- Lower monthly payments initially
- Re-pricing will occur once per year after initial term
- No pre-payment penalty
- First-time homebuyer specials available
- Save thousands of dollars in interest with Equity Advantage Program
- Why Choose an ARM?
The initial interest rate with an ARM is always lower than a fixed rate mortgage. This is an obvious advantage. But since the rate might keep increasing over time, it could wind up higher in the long run—with larger monthly payments. It's not for everyone, but an ARM could be perfect if:
- You plan on selling the house in 5-10 years
- You expect your salary and income to increase within a few years
- If the ARM has the option to convert to a fixed rate (this will often cost a fee that cancels out the initial savings from lower payments, but could be a favorable option to help get into the home and pay to refinance later)