Adjustable Rate Mortgage

About Adjustable Rate Mortgage Loans

An ARM is an adjustable-rate mortgage. Unlike fixed-rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on an ARM will change periodically.

The initial interest rate of an ARM is lower than that of a fixed-rate mortgage and a typical down payment is 5%.This is a great option for borrowers looking to take advantage of the "teaser" rate or initial fixed period, especially if they're planning to sell before the fixed period ends or pay the loan off with cash or a refinance.

In an adjustable rate mortgage, there will be an initial fixed rate period, but once it ends the rate changes according to market conditions. The change in rate will continue throughout the life of the loan but only during set periods of rate adjustments.

Most homeowners get into adjustable-rate mortgages for the lower initial payment, and then usually refinance the loan when the fixed period ends.

Who is this loan for?

An adjustable-rate mortgage is a good option for borrowers who are looking for a short-term loan or those who are able to afford the fluctuating rate.

Benefits of Adjustable-Rate  Mortgages

Lower initial rates
Lower monthly payments

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State of Florida, Colorado, Georgia and Tennessee.
NMLS #222883
Christopher Paul Financial, LLC dba CPF Mortgage is a Florida mortgage lender NMLS 222883, Florida state license MLD929, Colorado registered mortgage company NMLS 222883, licensed Tennessee mortgage lender NMLS 222883, and Georgia Residential Mortgage Licensee NMLS 222883. The main office is located at 10710 State Road 54, Ste. C101, Trinity, FL 34655. All loan approvals are credit driven, and all decisions are based on underwriting credit approvals. All rates, terms, and programs are subject to change without notice. Borrowers should consider their options carefully when choosing a loan program.
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