Adjustable Rate Mortgages

Adjustable Rate Mortgages

Looking for more flexibility? Adjustable rate mortgages start with a low introductory rate that adjust over time based on the terms of your loan. After the initial period, your rate could adjust up or down based on market conditions.

More Than a Mortgage

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Start Lower

Paying a lower rate at the start can help you save on monthly payments 

 

 

MapFlexibility to Move

Planning to move? A lower starting rate can save you money at the start

 

 

Sign DocRefinance Later

Refinancing in the future can help protect against market volatility

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Home Buying. Upgraded.

Buying your home should be fun and exciting. That’s why we’ve streamlined your experience from start to finish, making it simple and stress-free. With blazing fast technology and expert guidance along the way, it’s home buying for the digital age.

1. Get Pre-Approved

Your home journey starts with completing a fast and digital mortgage application. This will determine how much house you can afford and let’s realtors know you’re a serious house hunter. 

 

2. Search Smart

Use our free nationwide MLS database to search for your home, connect with realtors, and access your pre-approval letter all from your mobile device. 

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3. Lock Your Loan

Lock your loan through our digital portal or with one of our expert mortgage consultants. It's fast and easy and let's us begin processing your loan for closing. 

 

4. Close Virtually

A modern mortgage doesn't close at the attorney's office. Close when and how you want with our virtual closing, saving you valuable time and moneye. 

1. Get Pre-Approved

Your home journey starts with completing a fast and digital mortgage application. This will determine how much house you can afford and let’s realtors know you’re a serious house hunter. 

 

2. Search Smart

Use our free nationwide MLS database to search for your home, connect with realtors, and access your pre-approval letter all from your mobile device. 

Download Now

 

3. Lock Your Loan

Lock your loan through our digital portal or with one of our expert mortgage consultants. It's fast and easy and let's us begin processing your loan for closing. 

 

4. Close Virtually

A modern mortgage doesn't close at the attorney's office. Close when and how you want with our virtual closing, saving you valuable time and moneye. 

 

Adjustable Rate Mortgage (ARM) Loans

Also known as variable mortgage rates, adjustable-rate mortgage (ARM) loans are home loans with potentially fluctuating interest rates from month to month over the life of your loan. While there is a chance ARM loan interest rates can rise, ARM loans can also stay as low, or fall lower than your initial mortgage loan rate. ARM loans are a great option if:

  • You plan to sell your home within a few years.
  • You have wiggle room in your budget to take on a (potential) interest rate increase.

 

Adjustable-Rate Mortgage Example

There are a variety of options when it comes to adjustable-rate mortgage loans. For example, a 5/1 ARM loan offers an introductory interest rate for the first five years of homeownership. After five years, the rate can either increase or decrease annually. Another type is a 5/5 ARM loan, in which there is a fixed introductory rate for the first five years of homeownership, after which the interest rate can either increase or decrease every five years. These are just two of the many variances available.


The Pros and Cons of ARM Loans

When deciding whether or not an adjustable-rate mortgage loan is right for you, it is important to consider the pros and cons of this loan type. While ARM loans get a bad rap for their fluctuating interest rates, there are a few attractive benefits for the right borrower.


PRO: Build Equity Faster

Lower interest rates in the present and future mean you’ll pay less money towards interest, helping build your home equity faster. In months where your interest rate is lower than normal, you can put that difference in savings toward your principal balance and build your equity faster.


PRO: Potential Money Savings

When combined with the money-saving power offered by direct mortgage lenders like Wyndham Capital, you’ll be well on your way to buying or refinancing your home.


CON: Fluctuating Rates

It is no surprise the biggest “con” of ARM loans is the fluctuating interest rates. While this does mean the rates can decrease over time, they can also increase - causing your monthly mortgage payment to rise.


PRO: Rate Caps

Fortunately, even with the fluctuation of interest rates, ARM loans do have “caps,” which put a limit on the amount of increase that can happen with your rate and monthly payment. Similar to the interest rate, the cap rate changes over the lifetime of the loan.


CON: Loan Complexity

Adjustable-rate mortgage loans aren’t cookie-cutter loans. There are a lot of rules, fees, and processes for this loan type. If you don’t fully understand the structure of an ARM loan, it may end up costing you more in the long run.


If you are interested in pursuing an adjustable-rate mortgage loan, it is vital that you consult with a knowledgeable mortgage lender to ensure you understand how an ARM loan works and the benefits it can bring.


Over the life of your loan, an arm loan can save you thousands of dollars over a fixed-rate loan, especially when you choose a lower 5-, 7- or 10-year loan term. So, what are you waiting for? After you plug in your home loan figures into our simple mortgage calculator and decide it’s time for you to buy or refinance your home, speak with one of our expert mortgage loan officers for help deciding whether adjustable-rate mortgage loans are the best option for you.