Regardless of your credit situation, we likely have a program to meet the challenge. We will do our best to work through a credit problem. We have programs for the purchase of Vacation homes, 2nd homes and Investment property. Ask your mortgage representative for more information. But with an ARM, the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.
Lenders generally charge lower initial interest rates for ARMs than for fixed-rate mortgages.
This makes the ARM easier on your pocket book at first than a fixed-rate mortgage for the same amount. It also means that you might qualify for a larger loan because lenders sometimes make this decision on the basis of your current income and the first year's payments. Against these advantages, you have to weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. With most ARMs, the interest rate and monthly payment change every year, every three years, or every five years. However, some ARMs have more frequent interest and payment changes.