ACME Mortgage

Adjustable Rate Mortgages (ARM)

We offer a variety of different ARM products to suit your needs.

What Is An Adjustable Rate Mortgage?

An Adjustable Rate Mortgage (ARM) refers to loans for homes that feature an interest rate which can alter at set intervals. As these rates fluctuate, it implies that the monthly payments can also shift over the loan's duration. Such mortgages are denoted by two numbers, such as 7/1 or 5/1. The first figure represents the number of years the interest rate will remain constant, while the second indicates how frequently the rate may adjust either upwards or downwards after the fixed-rate period concludes. For instance, a 5/1 ARM maintains a fixed rate for the initial five years of the loan, after which the rate will adjust annually.

Top Reasons To Get An Adjustable Rate Mortgage

Initial Rate Cost Savings
Lower Rates than Fixed Rate Mortgages
Caps to Prevent Large Rate Adjustments
Possible Long Term Savings

ARM Eligibility Requirements

Income

Certain Adjustable Rate Mortgages may feature less lenient criteria regarding income qualification to help navigate and prepare borrowers for the adjustment phase of an ARM.

Debt

The Debt-to-Income (DTI) ratio plays a crucial role in qualifying for an ARM loan, as it reflects your capacity to manage existing debts (if relevant) along with your monthly mortgage payment obligations.

Credit Score

Higher credit score could qualify you for more favorable interest rates and a wider array of financing choices. Credit scores provide insight into your debt management over time and demonstrate your reliability when it comes to making payments. Generally, ARMs may be available for individuals with credit scores as low as 620.

Job History

Lenders will inquire about your employment history and typically look for a certain duration of consistent work. Demonstrating stable job tenure is advantageous.

Free Pre-Approvals

If you’re in the market for a home, we are glad to offer complimentary pre-approval services, which includes reviewing your credit report. Our pre-approval letters carry significant weight and are highly regarded, giving your proposals added strength in competitive scenarios. Sellers tend to hesitate when financing looks uncertain, making us a trusted lender for providing assurance to sellers

Free Consultations

If you’re not quite ready to purchase a home and are seeking information about down payments, monthly payment structures, credit matters, the purchasing process, or anything else, we’re here to address your inquiries. Additionally, if you are contemplating refinancing, we are prepared to assess and furnish you with all available options.