Tampa Adjustable Rate Mortgage Calculator
ARM Mortgages, also referred to as adjustable-rate mortgages, still have their advantages in certain situations, despite not being as popular as they once were. In comparison to fixed-rate loans, adjustable-rate loans offer a few perks for the right borrower.
One benefit of adjustable-rate mortgages is the lower interest rate at the start of the loan term. Typically, this initial rate is lower than that of fixed-rate loans. However, it’s crucial to keep in mind that this lower rate will eventually increase based on an external index. Therefore, borrowers who anticipate paying off their mortgage quickly, such as those who have saved a significant amount from selling a previous home, can take full advantage of the lower introductory rate. By paying off the entire loan amount before the rate rises, they can save a considerable amount of money in the long run.
Multiple Types of Adjustable-Rate Mortgages
There are various types of adjustable-rate mortgages (ARMs) for borrowers to choose from. The main categories include ARMs that adjust annually and those that adjust every six months. Additionally, most ARMs have caps in place to limit how much your monthly payment can increase, preventing a sudden surge in the interest rate.
If you are considering relocating within 3-5 years after securing your loan, an adjustable-rate mortgage could be a suitable choice for you. The experts at The Tampa Mortgage company will assist you in evaluating the current market conditions, your specific goals, and your risk tolerance before opting for this type of loan.
Feel free to utilize our calculator to estimate your monthly payments with an adjustable-rate mortgage. This tool takes into account the maximum rate hikes allowed at each interval until the cap is reached.
Take The Next Step
Get ready to take the next step towards prequalification with The Tampa Mortgage Company by your side. Our skilled team is here to assist you every step of the way, ensuring that you can make the most of the numerous advantages, including expert guidance on loans and down payments.