Adjustable Rate Mortgages (ARM)

What is an Adjustable Rate Mortgage?

An adjustable rate mortgage, or ARM, starts with a low introductory interest rate for a set period of time, generally five or seven years. The rate, as well as the principal and interest payment, is fixed during that initial period, but after that time the rate adjusts up or down depending on the terms of the loan program and the index that it is tied to.

For example, with a 5/1 ARM the rate will be fixed for the first five years and adjust annually each year thereafter.

Benefits
Available Programs
Eligibility

Benefits

Benefits of Adjustable Rate Mortgages

Introductory mortgage rates often lower when compared to fixed rate loans
30 year loan term keeps payments low
Current mortgage rates are low
Available for a wide variety of financial histories and property types

Available Programs

Available Adjustable Rate Program

FHA ARM Loans

eLEND offers adjustable rate financing for owner occupied homes as well as vacation and investment properties, and for homes with one to four units.

Eligibility

Do I Qualify for an Adjustable Rate Mortgage?

Qualification requirements will vary depending on which type of adjustable rate mortgage you apply for, but will be based on several factors including:

Credit history and score
The amount of income you earn
The amount of your other debts
How much equity you will have in the property

Though the initial monthly payment will generally be lower when compared to a fixed rate mortgage, you will need to qualify based on a higher payment to ensure you would be able to afford the home should the rate adjust higher in the future.

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