A 7/1 adjustable-rate mortgage (ARM) is a hybrid home loan product. Homeowners make fixed monthly mortgage payments at a set interest rate for the first seven years. After that time passes, a 7/1 ARM's rate can increase or decrease on an annual basis for the rest of the loan's life.
Is a 7 1 ARM a good idea right now?
When should you consider a 7/1 ARM? Adjustable-rate mortgages are best for people who are only planning to hold them for the initial term. So, if you're looking to move within seven years, or know you'll be able to refinance to lock in your interest rate in that time, a 7/1 ARM could be the right mortgage for you.
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An ARM loan lets you take advantage of low introductory interest rates — and build equity faster.
Michael Allen 865-803-3558 Direct/Text Broker/ REALTOR Steve Albin 865-964-9476 Direct/Text REALTOR/Broker