Providing a Flexible Future
Adjustable Rate loans start at a lower rate than Fixed Rate loans. They begin with a short fixed rate period of 3,5,7 or 10 years. After this the rates will adjust depending on the market, though there are caps as to how much a rate can increase in a year and over the full course of the loan. So while there is less consistency, they often offer a better rate over time.
Benefits
- Gives you a lower initial payment.
- Typically allows you to pay less interest over the loan term.
- Gives you flexibility to move or refinance in the future.
Ideal for:
- People who move frequently.
- People who may move to a bigger house in the near future.
- People who are financially disciplined.
- People who expect their income to increase.
Find a Loan Advisor
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