In 2022, Adjustable-Rate Mortgages have increased in popularity but what are they and are they right for you?
Let’s start with the basics: an Adjustable-Rate Mortgage, also known as an ARM, variable-rate mortgage, or tracker mortgage, is a home loan with an interest rate that periodically adjusts based on the market. As opposed to a fixed-rate mortgage, this means that your rate may go up or down in the future.
Who it’s right for: Buyers who are looking to get the best possible rate at the time of purchase tend to choose this option. This is also a great option when market rates are expected to continue to decrease over an extended period. Dependent on how the market fluctuates in the future, many buyers with this loan choose to refinance into a loan program that is more suitable for their circumstances at the time.
How they have changed over time: The burning question on the minds of many when it comes to ARMs is how they have changed since the housing bubble of the 2000s. Lending standards have changed immensely over the years. While years ago, these loans may have come with some features that could lead to financial troubles, those issues are in the past!
If you’re looking to learn more about ARMs or you’re ready to get pre-qualified, reach out to one of our qualified Loan Officers today at our Find A Loan Officer tool!