Types of Mortgage Loans with a New Orleans Area Realtor, Part 2 (ARM)

What is an ARM, adjustable rate mortgage? An adjustable rate mortgage or ARM is different from a fixed mortgage in that the interest rate can change over the life of your loan - and most likely will. The interest rates on a ARM’s are lower than 30 year fixed rate loans, but only have a locked rate for three, five, or seven years, depending on which one you choose. After the lock expires, rates can change every six months throughout the rest of the 30 year period. Borrowers choose ARM’s for the lower monthly payments, or when they know they will be selling the home before the lock rate expires. Remember, mortgage loans aren’t one size fits all! Reach out to talk to the GiGi Burk group about your goals and the best plan for YOU!