Adjustable Rate Mortgages
Benchmark Bank offers adjustable rate mortgages as loan options for qualified home buyers in the greater Columbus region. Adjustable rate mortgages guarantee an introductory rate typically at a discounted rate for a set period of time. After this time, the rate will “unlock” and adjust periodically to an outside index.
Benefits of Adjustable Rate Mortgages
- Lower Initial Rates: Adjustable-Rate Mortgages (“ARMs”) tend to offer lower rates at the beginning of the loan – a period typically ranging from a few months up to 10 years. For this reason, ARMs can be an attractive option for borrowers who anticipate moving or selling their property in three to five years.
- Rate Adjustments Can Lower Interest Rate: Since interest rate is tied to an index based on the market interest rate, a borrower may actually see a reduced interest rate upon adjustment if interest rates decrease.
- Caps On Rate Increases: Many different types of ARMs are available – some adjust once a year and others every six months. Most have “caps” that ensure your monthly payment will not increase too much. Similarly, some ARMs have a “lifetime cap”, which caps the maximum interest rate your loan may reach but never exceed under any circumstance.
Adjustable Rate Mortgage Requirements
- Down payment of at least 5-20%
- Qualifying credit score
- Private mortgage insurance (PMI) is usually required if the borrower places a down payment of less than 20%
Ready to Apply For a Loan? Get in touch with a Benchmark Bank Mortgage Banker today to apply.
*Rates, terms, and conditions are subject to change without notice. The actual rate and APR may vary. For adjustable rate mortgages (ARM), after the initial period, rates and payments are based on today’s index plus a margin. Private Mortgage Insurance (PMI) is required on most conventional and ARM loans with less than 20% down payment. Most government loans require a 3.5% down payment. Taxes and insurance may increase payment amounts. all loans are subject to credit review, underwriting guidelines, verification of identity and approval. Borrowers are responsible for fees associated with any payoff of a prior lien. Borrowers are also responsible for closing costs, homeowner’s insurance, taxes, and PMI if applicable. Benchmark Bank is an equal opportunity lender. Member FDIC. Not all loan programs are available in all states for all loan amounts. NMLS # 410770