What is an adjustable-rate mortgage?
An ARM is a type of home loan with an interest rate that will adjust up or down annually once the fixed-rate introductory period is over. Annual adjustments are based on the rate your loan is indexed to. Adjustable-rate loans are also available through federal home buying programs such as FHA loans.
ARM Mortgage Benefits
When to Choose an ARM Loan
Our Mortgage Loan Originators can help you find the best mortgage loan option to match your needs and budget. If an ARM loan’s up-front savings on interest appeals to you, this type of mortgage is available as a conventional loan as well as a government-insured mortgage such as a VA, FHA, or USDA loan.
Fixed-Rate Mortgages are the primary alternative to ARM loans. The interest rate may be higher on a fixed-rate loan, but it also remains stable throughout the life of the loan, offering predictability that you can’t get with an ARM.
Your choice may come down to how long you envision living in the home. If this is a “starter house,” you may be better off with an ARM since you plan to sell around the time the introductory period ends anyway. On the other hand, if you see yourself staying long-term, even past when your mortgage is paid off, the stability of a fixed-rate loan may be a better option.
Do more with The Fauquier Bank!
We are a proudly independent community bank with nine branch locations in Northern Virginia: Manassas, Haymarket, Bristow, Gainesville, Warrenton, The Plains, New Baltimore, Catlett, and Bealeton. As one of the only community banks serving Prince William and Fauquier counties, we reinvest our profits back into the local towns we serve. TFB mortgage customers can expect a personalized experience from beginning to end, as our friendly and knowledgeable Mortgage Loan Originators guide you through the application and closing process. To speak with a local mortgage lender, give us a call, chat with us or apply online, or visit your nearest TFB office.
Fixed-Rate Mortgage FAQs