Adjustable-Rate Mortgage (ARM) – What Is It & How To Apply - Total Mortgage

Abstract

Adjustable-rate mortgages (ARMs) are mortgage loans with interest rates that can fluctuate and change based on market conditions. If you’re looking for the lowest possible mortgage rate from the start, an ARM is usually the better choice than a fixed-rate mortgage. While an ARM might be advantageous at first, the fact that your monthly payments will shift over time can make it more difficult to budget. The possibility for higher monthly payments is the primary drawback. The option for higher Monthly payments was the primary drawbacks of an ARMs is the main drawback. If you are planning to buy a property as a stopgap and don’t plan on An FHA ARM requires a minimum score of 580. An ARM requires a Minimum score of 5.5% of a FHA Arm requires aminimum score of 6,000 to 5,000.