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If you are thinking about getting an adjustable-rate mortgage, there are several different options that you might want to consider. Here are some of the different adjustable-rate mortgage options on the market.
Convertible ARMs
With a convertible adjustable-rate mortgage, you are going to be able to convert the loan into a fixed-rate mortgage after certain conditions have been met. Typically, you will have to wait a certain amount of time before you can convert this loan.
Hybrid ARMs
Another type of loan is the hybrid ARM. This type of mortgage gives you a fixed interest rate for a certain period. After that initial fixed-rate period, you are going to convert the loan into an adjustable-rate loan. For example, you might have a 5/1 ARM that gives you a fixed interest rate for five years and then an adjustable rate every year after that.
Option ARM
The option ARM mortgage is another type of adjustable-rate mortgage that you could choose. With this type of mortgage, you are going to be able to choose your mortgage payment every month. You will have to make a minimum monthly payment, and the principal and interest that you do not pay will be added onto the balance of the loan.
