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Because of the lower initial payment, most homeowners choose adjustable-rate mortgages. When the fixed phase of the loan expires, they typically renew the loan. The loan rate turns variable or adjustable at that point, and the homeowner will probably refinance into another ARM, something fixed, or sell the house outright.

An ARM is a mortgage with an adjustable rate. An ARM's interest rate will fluctuate over time, unlike fixed rate mortgages, whose rate is fixed for the duration of the loan. Since the initial interest rate of an ARM is lower than that of a fixed rate mortgage, it may be a good option to take into account if you only intend to own your home for a short period of time, you anticipate an increase in future income, or the current interest rate for a fixed mortgage is too high. With resources and knowledge that will aid you along the road, we're here to make the home loan process much simpler for you.
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