ENG Lending's adjustable rate mortgages offer an excellent option for many homebuyers - a lower rate than traditional fixed-rate mortgages offer and the stability of longer-term fixed-rate mortgages. To be sure, the longer the rate is fixed and the more stability the borrower receives.
Interest rates on adjustable rate loans are attractive and fixed until they reset in 3, 5, 7, or 10 years.
Many borrowers, not surprisingly, prefer them, especially those who plan to move before interest rates on their loans reset.
Many homebuyers opt for Adjustable Rate Mortgages because they offer a low-interest rate and monthly payment. That's because they meet the needs of homeowners well, and here's why: Most borrowers stay in their homes just five to seven years, making 3-, 5-, or 7-Year ARMs excellent loan options for them.
The 3-year ARM loan is amortized over 30 years, and its rate is fixed for the first 3 years, and it becomes an adjustable mortgage for the remaining 27 years of the 30 year cycle.
The 5-Year ARM rate loan offers an interest rate that is ARM for 5 years, and it becomes an Adjustable Mortgage for the remaining 25 years.
The 7-Year ARM rate loan provides an interest rate that remains ARM for seven years, and it becomes an Adjustable Mortgage for the remaining 23 years.
The 10-Year ARM rate loan offers an interest rate that is fixed for the first 10 years, and it becomes an Adjustable Mortgage for the remaining 20 years.