Understand how your ARM adjusts before taking out an adjustable rate mortgage

  • How soon your payment could go up – e.g. 7 year ARM, your initial rate will stay the same for 7 years before it changes
  • How often your interest rate will adjust – some could adjust monthly or every 6 months or different term according to your loan contract
  • How high the interest rate could adjust each time when it happens and how much is the impact on your mortgage payment
  • If there is a cap on how high your interest rate could go
  • If there is a limit on how low your interest rate could go
  • Don’t assume you will be able to sell your home or refinance your mortgage before the rate changes because value of your property could decline, your financial condition could change, therefore, you need to consider if you will still be able to afford the loan if the rate and payment go up to the maximums allowed under the loan contract

* Message from your Real Estate and Mortgage Broker, Andy Lamandyjustsold@gmail.com, 408-218-2513

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