It doesn’t matter if you’re purchasing your first home or your third; Bethpage is here to help turn your home financing dreams into a reality. It’s a huge moment in your life. We want you to have the best experience possible by matching you with the best mortgage product for your needs.
When looking at all of your choices, an Adjustable-Rate Mortgage (ARM) has some unique benefits that could make it the right choice for you. So, what is an ARM, and what does it bring to the table? Let’s take a look.
What is an Adjustable-Rate Mortgage?
An ARM is a mortgage with a rate and payment that generally starts with a low fixed interest rate for an initial fixed period (typically 3, 5, 7, or 10 years). After the initial fixed period ends, the interest rate will adjust at preset intervals based on market conditions. Typically, an ARM will adjust yearly and can go up or down depending on the rate environment. Adjustable-rate loans are often described by their initial rate period and adjustment interval.
So, what are some of the benefits of this type of loan?
A home can sometimes be more affordable.
Financing your home with an ARM could mean you could fund more than a fixed-rate mortgage would allow because of the reduced initial payments. Is that 2,500 square foot home a better fit for your family’s needs than the 2,000 square foot home? If your income allows, or if you plan to sell your house at a later date, an ARM could potentially allow you to purchase a larger home than you originally planned.
Great if you plan to move and sell your house at a future date.
Is there a chance that you might move again in several years? An ARM can help save you money until that time comes. Suppose you expect to move before the initial fixed period ends. In that case, you may be able to take advantage of a lower initial interest and payment during the initial fixed period without the risk of an interest rate increase.
If rates fall, so can your payments.
Interest rates rise and fall, typically in lockstep with the Federal Reserve Bank’s (the Fed) changes in the rate charged on the money they lend to financial institutions. When the Fed wants to grow the economy, it will reduce its interest rate to make money more affordable.
Your adjustable-rate mortgage interest rate could fall during a time of falling rates - depending on the product – which may lower your monthly payment. However, it is critical to note that your interest rate could also increase during a time of rising rates – which may increase your monthly payment.
Bethpage offers a wide selection of mortgage options. We encourage you to speak with a Mortgage Loan Officer who can help you make the right decision for you.
For today’s rates, visit lovebethpage.com/adjustable or call 855-285-8094.
All loan terms are subject to credit and loan program requirements (applicants may be offered credit at higher rates and other terms). Certain loan programs may not be available to all applicants. Loans above 80% Loan to Value (LTV) requires private mortgage insurance (PMI). Bethpage does not offer residential mortgage loans in Texas. To obtain a loan, membership at Bethpage is required by opening a $5.00 minimum share savings account at or prior to consummation of the loan. Rates, loan programs, terms, and conditions are subject to change without notice. Other restrictions and limitations apply.
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