Adjustable Rate Mortgages
Adjustable Rate Mortgages (ARM) are ideal for homeowners who may move soon, pay off the home loan quickly or are willing to take the risk that the rate will adjust lower in the future.
How does an Adjustable Rate Mortgage work?
This mortgage offers a lower initial interest rate/APR than fixed loans and the rate can adjust periodically. This means your monthly payments could be higher or lower throughout the life of the mortgage.
You have several options available for how long the initial lower rate will be in place. Once that time period is over, the rate can change every year. The rate changes based on market conditions, using an index published in the Wall Street Journal. So if the index rate goes down, your monthly payment may go down, depending on the type of Adjustable Rate Mortgage you select. Even though the rate can change throughout the mortgage, there are limits, or caps, on how much the rate can increase or decrease.
Redstone has a variety of Adjustable Rate Mortgages. Your loan officer can help you select the right one for your unique situation.
Why should I choose Redstone Adjustable Rate Mortgage?
- Various terms available
- Competitive rates
- Maximum financing up to $417,000
- Jumbo financing terms available for loan amounts of $417,001 to $500,000
- Rate changes occur at ARM program chosen intervals depending on the specific ARM program
- Monthly principal and interest payment will change when the rate changes
- Easily apply online, over the phone, or in person by scheduling an appointment at 256-882-8500.