If you’re looking to buy a new home, INB can help you find the best financing option. Perhaps an Adjustable Rate Mortgage (known as an ARM) is right for you.
What is an Adjustable Rate Mortgage?
Unlike traditional mortgages that have one interest rate over the life of the loan, ARMs have two periods: a fixed period and an adjustable period. These home loans begin with an initial fixed interest rate that later adjusts based on the market.
ARMs typically start with a lower interest rate than fixed rate mortgages would, giving you the lowest possible interest rate starting out.
ARM loans are named by the length of time the interest rate remains fixed and how often the interest rate is subject to adjustment afterwards. At INB, your initial period of fixed interest can be three, five or seven years, with an adjustment each year following.
INB offers these terms for ARMs:
We also offer:
- Loan amortization over 15 or 30 years
- No pre-payment penalties
When the initial period ends, your mortgage’s interest rate will reset to the current market interest rate (the index) plus an additional margin (an amount added to the index to determine your rate). Your interest rate will reset every year on the same date. Adjustments may be subject to limits.
Mortgage options made easy
Call 1-877-771-2316 and ask for an INB mortgage lender. To apply, visit ichooseinb.com.