The initial interest rate is the rate charged during the first interval of an ARM loan. Initial interest rates are generally subject to caps and can only vary to a degree. Initial interest rate caps are put in place to protect the consumer from payment shock and protect the lender from rates that drop too low.
Some ARM programs through Quicken Loans offer lower mortgage payments and come with an initial interest rate period that is fixed. Choose from three, five, or seven year periods with a fixed initial interest rate with our ARM Mortgages.
For more information, feel free to call (800) 251-9080 to talk with a Quicken Loans Mortgage Expert today.