You can afford a more expensive home with an Adjustable Rate Mortgage.
Fact: The initial rate on an ARM (Adjustable Rate Mortgage) is lower than on a fixed rate mortgage which allows you to afford a more expensive home.
This initial rate is actually fixed for anywhere from 1 month to 10 years. Subsequently, the rate may adjust based on current market conditions. This adjustment can occur every year within certain limits, or 'caps.'
The type of loan you obtain requires careful consideration. It is advisable to understand the provisions and attributes of different loan programs before deciding which one is right for your purchasing needs.
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