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ADJUSTABLE RATE MORTGAGES
Star Loan Services offers low rate adjustable rate loans. These
types of loans are at a fixed interest rate for the first three,
five or seven years. After the 'locked' period is over, your
interest rates begin to adjust.
Compared to
fixed rate loans, ARMs offer low interest rates, in exchange for
a little bit of uncertainty.
Types of adjustable rate mortgages:
Two of our more popular ARM loans are option and traditional
loans.
Option ARM: This loan program is an adjustable rate
mortgage with added flexibility of making one of multiple payments
on your monthly mortgage. This will allow you to manage your monthly
cash flow and budgeting more precisely.
Traditional ARM: This type of loan is exactly how is
sounds...nothing elaborate, just an initial lower interest rate and
an annual adjustment after the initial "lock" period.
Interest Only
Loans: Allow you to pay only the interest of the
loan for the ARM period. After the ARM period expires, you will have
to pay the interest plus the premium.
When would I apply for an adjustable rate mortgage loan?
- Utilizing a
second mortgage in the form of an ARM if you
are looking to save on
PMI
as a result of taking out a
jumbo loan that is more than 80% of the home's value.
- If you intend on selling your home before the ARM rate expires.
- You don't have a problem with not knowing what your monthly
payments are going to be.
Please contact
us if you need help determining if an adjustable rate loan is
right for you. We also suggest you use the
adjustable rate vs. fixed rate calculator to help you determine
what you can expect as your monthly payments for each loan type.
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