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1 Year ARM Mortgage

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Total Mortgage's newest products are the one year Conforming ARM and one year Jumbo ARM. The 1 year ARM offers an extremely low initial interest rate and offers significant savings for certain borrowers.

An adjustable rate mortgage (ARM) is a mortgage loan that has a fixed interest rate for a certain period of time, after which the mortgage rate adjusts based upon market factors. Typically the new interest rate is the margin (which is a set percentage determined by the lender) plus a market index (such as the London Interbank Offered Rate, LIBOR). The amount the mortgage rate can increase is usually capped at a certain percentage per year and a certain percentage over the life of the loan. One of the most attractive features of an ARM is that the initial interest rate is typically much lower than that of a fixed rate loan.

It is important to note that there is some inherent risk with an adjustable rate mortgage, and the product is not for everyone.

Some borrowers that might benefit from a one year ARM are:

  • Borrowers who are market savvy, who follow the indices, and who have a pretty good feel for where interest rates and the markets are heading.
  • Borrowers with a large income and a very high credit score.
  • Borrowers who are on a career path that necessitates frequent moves, but would still like to build equity in a home.
  • Borrowers who work on a bonus structure that might allow them to pay off their entire mortgage.
  • A borrower who plans to upgrade to a new home in the near future.

If you fit the above profile, a One Year ARM may offer thousands of dollars in savings. Call 1-877-868-2509 to speak to one of our mortgage professionals and find out what Total Mortgage can do for you.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

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