Pros of an adjustable-rate mortgage Feature lower rate and payment early in the loan term. Allow borrowers to take advantage of falling rates without refinancing. Help borrowers save and invest more money. Offer a cheaper way for borrowers who don’t plan on living in one place for very long.

An adjustable rate mortgage is an alternative to a fixed-rate home loan. Typical advantages of ARMs include: Homeowners with an ARM take advantage of an “introductory” interest rate set lower than that for conventional loans. The loan proceeds at this rate for.

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.

2. Adjustable Rate (Text on Screen) Fixed Rate Mortgage: (Image) Illustrated lock with a percent symbol on it. (Text on Screen) Locks in an interest rate for the life of your mortgage (image) graph showing increase along with a shield that has a dollar sign symbol on it. (Text on Screen) Helps PROTECT from RISING INTEREST RATES (Image)

Learn more about adjustable rate mortgages and whether they are right for you or call a ditech Home Loan Specialist today: (800) 700-9212.

Lastly, the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.46%, inching forward from last week’s rate.

3 Year Arm Mortgage Rates Current 7-Year Hybrid ARM Rates. The following table shows the rates for ARM loans which reset after the seventh year. If no results are shown or you would like to compare the rates against other introductory periods you can use the products menu to select rates on loans that reset after 1, 3, 5.

Fix the rate and payment on the first 3, 5, 7, or 10 years of your 30-year Adjustable Rate Mortgage.

What Is A 5 1 Arm Loan Mean 16 Types of Mortgages Explained – The Dough Roller –  · Did you know there are many different types of mortgages? We list 16 of the most common mortgage options, along with the pros and cons of each.

You could secure a lower interest rate by using an adjustable-rate mortgage ( ARM) loan instead of a traditional fixed-rate loan. So you could you save money.

The size of the average fixed-rate mortgage last week nationally was $280,900. The size of the average adjustable-rate mortgage was $688,400 – two and a half times as big. That data point, courtesy of.

An adjustable rate mortgage is a home loan whose interest rate and payments will change periodically, based on rising or falling of interest rates. Homebuyers gamble that the low-interest rate that ARMs typically offer at the start of the loan, won’t rise so quickly that they can no longer afford the home.

Your monthly principal and interest payment may be less during the initial fixed interest rate period for an ARM versus a fixed rate mortgage; Your initial interest.