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There are several different mortgage options available for prospective homebuyers and homeowners looking to refinance.  Each mortgage type has its advantages and disadvantages, and one that’s often talked about it the adjustable rate mortgage (ARM).

If you are looking for the lowest available rate and want to significantly reduce the cost of your mortgage, a 5-year ARM might be your best bet.

One of the advantages of the ARM mortgage is the initial fixed interest rate period – the time in which the interest rate is fixed or frozen.  This comes in handy if you plan to refinance or sell your home, in five to seven years, before the fixed period has ended, in which case an ARM is typically the best mortgage option for you.

While the ARM is a great option for some people, it’s not for everyone.  One of the disadvantages of the ARM is that after the fixed period folks need to be prepared for the fluctuations in interest rate and monthly payment (which could go up or down depending on market indices).  A mortgage expert can help you decide if this type of loan is right for you.

Remember, research is fundamental when making one of the most important purchase decisions of your life. Quicken Loans offers options such as the PMI Buster to help consumers make the best decision to meet their financial goals. The closing cost cutter will assist you in getting your loan closed fast even in the event that you have limited money to put toward your closing cost.

Contact Quicken Loans today for more information on an adjustable rate mortgage and to determine if it’s right for you.

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