Adjustable Rate Loans/Mortgages
In life, timing is everything. Why should mortgages be any different?
An Adjustable Rate Loan or Adjustable Rate Mortgage (ARM) can be your ticket to getting more "house"
than you thought you could afford.
With an ARM, you enjoy a lower, fixed interest rate for a set period of time then the rate adjusts based on financial
markets for the remainder of the loan term. So, your monthly payments are lower at first, but then, down the road, may
increase if interest rates go up. Even though your monthly payment may increase after the fixed period, ARMs do have
interest rate caps to limit payment fluctuations regardless of market conditions.
CitiMortgage has a choice of ARMs with initial fixed rate periods of 10, 7, 5, 3 and 1 year terms and a 6 month term.
In addition, CitiMortgage also offers an interest-only ARM where you only pay the interest on your loan plus any
applicable taxes and insurance. Contact one of our Mortgage Consultants to evaluate your situation
and see if an ARM product is right for you.
Compare Adjustable Rate to Fixed Rate Loans.
| |
Adjustable Rate Loans |
Fixed Rate Loans |
| Monthly Payment |
Monthly payments are fixed for a period of time and
then can adjust - either up or down. |
Monthly payments of principal and interest stay the same
throughout the life of the loan. |
| Interest Rate |
Is the same for a fixed period of time and then can change periodically |
Interest rate stays the same throughout the life of the loan. |
| Biggest Benefit |
Your initial interest rate is typically lower than a fixed rate
mortgage, which may lower your monthly payment or allow you to afford a more expensive home. |
Your monthly payment of principal and interest stays the same,
which makes it easier to manage your housing budget. |

|