Shopping for a mortgage does not have to be a difficult task-if you have been trying to figure out which option is best to finance your new home, it's time to see how the experts at Absolute Mortgage can help. We offer a wide variety of home loan options, including popular adjustable rate mortgages. Find out whether a flexible 7 year adjustable rate mortgage (ARM) could be right for you.
7 Year ARM
Adjustable rate mortgages have become increasingly popular among homeowners who want to find a way to save money and get great low interest rates.
A 7 year ARM is structured with a fixed rate for the initial 7-year period of the loan. The rate adjusts annually every year beginning with the 8th year of the loan.
Adjustments are based on changes in indices like to Treasury Securities, LIBOR, or Prime Rate, which is calculated and added to a pre-determined margin to get a final interest rate. Increases are capped each year to protect you from wild swings in payment terms, even if interest rates are changing rapidly in the market.
Why Choose a 7 Year Adjustable Rate Mortgage Loan?
Homeowners who choose a 7 year adjustable rate mortgage can often achieve significant savings on their interest rate in the first seven years of the loan, and may be able to save even more over the entire life of the loan, depending on what interest rates look like in future years.
To determine if you're a good candidate for a 7 year ARM, take a look at your long-term plans. If you expect to be earning a higher income within the next 7 years, you can get a bigger home now at a lower payment. In addition, if you are having trouble getting financing at a fixed rate for the home you want, lenders may be more willing to loan you the money on an adjustable rate because you are better able to make the lower initial monthly payments that come with a lower interest rate.
7 year adjustable rate mortgages are also a great way to save money and increase your cash flow in the short-term. If you're looking for ways to save more money for retirement, put money into your children's college funds, or just save some extra cash for emergencies, you can use the interest savings in the first 7 years of the loan to build your finances in other areas.
7 Year ARM rates
With 14 years of experience working with clients on mortgage loans, Absolute Mortgage can provide you with the best possible interest rates on a 7 year adjustable rate mortgage. We specialize in home loans and have a team of professionals dedicated to providing excellent customer service on an individual basis for each client.
Whether you are ready to get a loan right now, or you are just shopping around to find out your options, contact us today to get more information about how Absolute Mortgage can help you finance your dream home.
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