Choosing the right financial product
We recognize that it isn’t easy to understand the many loans and other financial services products that are available today. At Prysma Lending Group, we take the time to explain each option and find the right loan to meet your needs. Below you will find three main mortgage loan options:
Adjustable Rate Loans
It is the option we recommend if you plan to sell your home within 2 or 3 years. An adjustable rate mortgage, or ARM, has an introductory interest rate that lasts a set period of time and adjusts annually thereafter for the remaining time period of a total of 30 years. After the set period, your interest rate will change and so will your monthly payment.
10/1 ARM: Your interest rate is set for 10 years then adjusts for 20 years.
7/1 ARM: Your interest rate is set for 7 years then adjusts for 23 years.
5/1 ARM: Your interest rate is set for 5 years then adjusts for 25 years.
3/1 ARM: Your interest rate is set for 3 years then adjusts for 27 years.
Consumer Handbook on Adjustable Rate Mortgages : http://files.consumerfinance.gov/f/201401_cfpb_booklet_charm.pdf