Adjustable Rate Home Mortgage

An adjustable rate home mortgage typically carries an interest rate that is lower than those offered with a fixed-rate loan. As a result, the adjustable rate home mortgage can make the first few years of homeownership more affordable because of the positive impact that the lower interest rate has on the monthly payment amount.

The initial interest rate on an adjustable rate home mortgage is typically set at a fixed level for a pre-determined amount of time, usually one year, three years or five years. At the end of that time period, the interest rate adjusts to a level determined by various market indices.

Going forward, as the interest rate changes, so too do your monthly payments. Because of this, it is important that you work with a qualified and knowledgeable lender to determine if it is the best home mortgage option for you.

If you are currently considering an adjustable rate home mortgage for either a new purchase or home refinance, a Ross Mortgage representative can help you make the right choice.