Understanding Adjustable Rate Mortgages (ARMs) | Quicken Loans Education
The adjustable rate mortgage (or ARM) is a home loan that begins with an initial fixed-rate period and then adjusts up or down, depending on market conditions. Millions of home buyers and homeowners can save money with an ARM because ARMs often offer lower initial mortgage rates than fixed-rate mortgages. ARMs are a great choice for people who move or refinance their home often and can save them thousands of dollars. At Quicken Loans, our adjustable rate mortgages come with an initial fixed-rate period of 5, 7 or 10 years. Because ARMs are amortized over a 30-year period and have a lower initial rate, ARMs can offer a very low payment and can free up money for other purposes. This is a top reason why ARMs are the mortgage of choice for the financially savvy. To learn more about ARMs, go to http://www.quickenloans.com/home-loan… or call 800-QUICKEN.