Adjustable Rate Mortgages (ARMs)


Adjustable rate mortgages are available in varying time frames.  Instead of a fixed rate for the length of the loan, adjustable rates do just that; they change in time increments, determined by you and Amerihome Lending. One-year, 3/1, 5/1, 7/1, and 10/1 ARM loans are available to help meet your needs. A one-year ARM may change every year based on an index (such as the weekly average yield on U.S. Treasury Securities) plus a margin. A 3/1 ARM fixes a rate for the first three years and then may adjust yearly after that. 5/1, 7/1 and 10/1 ARMs simply fix the rate for a longer period of time before adjusting annually. Depending on how long you plan to stay in your home, an ARM can help you obtain the lowest rate possible for the longest period of time. This variety of adjustable rates allows you and your Amerihome Lending loan officer to fit your mortgage to your individual needs.


As a rule, interest rates on ARMs are usually lower at the outset than fixed rate loans, and thus can be easier to qualify for. Generally, there are caps placed on how much a rate can go up or down incrementally, as well as a lifetime-of-the-loan cap.


Your Amerihome Lending mortgage planner can help you choose the loan that best fits your financial situation. Call us today at 240-207-2800 for information on current rates and the types of loans suitable for your needs.



Amerihome Lending

110 North Washington Street

Suite 402

Rockville, MD 20850

240.207.2800 tel

240.207.2801 fax

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