Learn About Adjustable-Rate Mortgages
Are you in the market for a new home and unsure which mortgage loan to choose? Have you considered an Adjustable-Rate Mortgage (ARM)? At MORTGAGEinc, we recommend ARMs for those looking to maximize their buying power in today's market.

What is an Adjustable-Rate Mortgage loan?
An Adjustable-Rate Mortgage (ARM) is a home loan with an interest rate that may change periodically based on market conditions. ARMs offer a lower initial interest rate compared to fixed-rate mortgages, leading to lower monthly payments and increased buying power.
Who qualifies for an Adjustable-Rate Mortgage?
ARMs are ideal for individuals planning to stay in their homes for a short period. To qualify for an ARM, you typically need:
- A minimum down payment of 3% to 5%
- A qualifying FICO® Score of 580 to 620, with a debt-to-income ratio (DTI) of no more than 50%
- For better terms, a FICO® Score of 660+ and a down payment of at least 10%
What are the benefits of an Adjustable-Rate Mortgage?
- Lower Initial Payments: The lower initial interest rate results in lower monthly payments, helping you save money.
- Short-Term Advantage: Ideal for those not planning to stay long-term, allowing you to benefit from the initial lower rate.
- Rate Adjustment Caps: ARMs typically have caps on how much the interest rate can increase, protecting you from unexpected rate hikes.
How often can my interest rate change with an Adjustable Rate Mortgage?
The frequency of interest rate changes depends on your loan terms. Some ARMs adjust annually, while others may adjust monthly. The most common adjustment period is every six months.
Find the Perfect ARM with MORTGAGEinc
For more information or to start your application, contact MORTGAGEinc today, info@mortgage-inc.com!