We at Gold Trust Lending believe in providing you with several mortgage options that you can compare so you can make an informed decision. You will be able to see how a fixed rate loan will compare with an adjustable rate mortgage. We will also help you compare mortgage interest rates, points and many other loan options so that you will be able to find the type of mortgage that best fits your needs and plans for the future.
The main problem with adjustable rate mortgages or ARM is that your monthly payments can be very unpredictable. ARM is great of the interest goes down because that means the monthly payment goes down. But, when the interest rate goes up, then the payment can become difficult to manage. The higher payment can make the family budget highly problematic.
What is an ARM
Adjustable rate mortgages or ARMs are very different from mortgages that are fixed rate. The primary difference is the interest rate and the monthly amortizations change along with market interest rate fluctuations. Most ARMs have an initial period where the interest rate does not change akin to a fixed rate mortgage. However, as this period expires, the interest change then changes at certain preset intervals.
An adjustable rate mortgage or ARM is considered riskier than a fixed rate mortgage because the monthly payment can change significantly. As an exchange for taking such a risk, borrowers are rewarded with an interest rate that is significantly below the market rates for 30-year fixed rate mortgages initially. The higher the frequency of rate adjustments throughout the mortgage’s term, the lower the initial rate is.
How to Refinance an ARM
Gold Trust Lending will help you find the mortgage option that is right for you. We understand that trying to choose which mortgage is the most affordable is probably one of the biggest decisions that you will ever make.
At Gold Trust Lending, there is a dedicated and highly-trained team of mortgage professionals who are always ready to answer any questions that you may have regarding which type of mortgage is good for you and which type would be most affordable.
Gold Trust has been serving homeowners for decades. We offer a full range of mortgage related services designed to help you find the best financing options. Our mission is to serve. We firmly believe that you are best served by us if we conduct business in a manner that reflects honesty and integrity. At Gold Trust Lending we make it a point to explain financing programs and options in a way that can be easily understood. We also aim to communicate with you constantly during the entire loan process. Please feel free to contact us today so that we can help you take the first successful steps towards having a home of your very own.
The first steps to turning your dream to own your first home a reality are:
- Complete our simple, secure online instant quote on the left sidebar of this website
- Receive a personalized instant quote from a licensed loan originator
- Choose the loan that fits your needs
- Let us handle the loan process from start to finish until the day you get your keys
When you are truly ready to make your dream to sleep in your own home a reality, Gold Trust Lending can help you make sure you enjoy all the benefits of getting a home loan that truly fits your needs.