Adjustable-Rate Mortgage (ARM): These mortgage loans have interest rates based on a specific interest-rate index.
At Solutions First Mortgage Inc., we believe an Adjustable-Rate Mortgage Loan should only be used for people who intend to hold the property for a short period of time, generally less than three years. Most often, these types of loans are best used for someone like a real estate investor who has a strategic plan to purchase for this short period of time; to renovate and flip, to create an income generating property, or a lease option property. A Real Estate purchaser should have a very good understanding of real estate market trends, market fluctuations, and market risk. A good real estate investor should always have a good exit strategy.
A consumer on a fixed income, who does not have the means or the ability to increase their income on short notice and cannot sustain the higher income for a long period of time, should not consider an Adjustable-Rate Mortgage Loan.
If the interest-rate index rises, the Mortgage Loan interest rate and your monthly payment go’s up. If the interest-rate index falls, the mortgage loan interest rate and monthly payment go down.
As with any mortgage loan, you should ask for–if you have not been given one–an Adjustable-Rate Mortgage (ARM) Disclosure: This is a document that describes the features of the adjustable-rate mortgage (ARM) loan program you may be considering. This should include information about how your interest rates and payments are determined, how your interest rate can change, and how your monthly payment will be impacted by this change.
The lender is required to provide this document to you, along with a Good Faith Estimate (GFE) and a Truth-In-Lending Statement (TILA), when you have completed and handed in your application; or before you pay a nonrefundable fee–whichever is earlier. At Solutions First Mortgage Inc. we do not charge an application fee.
For further information about getting the right mortgage for you and to arrange your ‘NO-FEE ASSESSMENT’
CALL US on (+1) 941-921-1110