Adjustable-rate mortgages (ARM) are home loans in which the interest rate could change over the life of the loan.
ARM loans are not for all borrowers, but they are a good fit for some home buyers. An ARM loan may be a better choice:
First Castle offers a 5/1 ARM, which typically has a lower interest rate than a fixed-rate loan for the first five years. This makes for a more affordable monthly payment for the first five years.
A 5/1 adjustable-rate mortgage (ARM) typically has a lower interest rate than a fixed-rate loan for the first five years. This makes for a more affordable monthly payment for the first five years.
After the initial five years, the interest rate adjusts each year until the loan is paid off. The annual adjusted rate is based on the 1-year Treasury rate.
The interest rate and your monthly payments can change after the initial five year fixed-rate period. However, First Castle has a cap in place to prevent dramatic payment increases.
Call our mortgage specialists to talk about which mortgage loan is right for you. Our mortgage specialists are NMLS licensed (First Castle Federal Credit Union (NMLS ID 772409) and do not earn a commission on your mortgage. This ensures that you work with someone who is accredited and someone whose primary goal is to walk you through the process with no pushiness.