Orlando Adjustable Rate Mortgage Calculator

While adjustable-rate mortgages (ARM Mortgages) are not as common nowadays, they can still be advantageous in specific circumstances. In comparison to fixed-rate loans, adjustable-rate loans provide several benefits for the appropriate borrower.

One of the advantages of adjustable-rate mortgages is the lower interest rate at the beginning of the loan term. This initial rate is typically lower than that of fixed-rate loans. However, it is important to note that this lower rate will eventually increase based on an external index. Therefore, borrowers who anticipate paying off their mortgage quickly, such as those who have substantial savings from a previous home sale, can take advantage of the lower introductory rate. By paying off the entire loan amount before the rate increases, they can save money in the long run.

There are various types of adjustable-rate mortgages (ARMs) that borrowers can choose from. The two main categories are ARMs that adjust annually and those that adjust semi-annually. Additionally, most ARMs come with caps that limit the amount by which your monthly payment can increase, preventing the interest rate from rising too quickly.

If you are planning to move within 3-5 years of obtaining your loan, an adjustable-rate mortgage could be a beneficial option for you. The mortgage specialists at The Orlando Mortgage company will assist you in evaluating current market conditions, your personal goals, and your risk tolerance before deciding on this type of loan.

If you are interested in finding out what your monthly payments would be under an adjustable-rate mortgage, our calculator can provide estimates. It takes into account the maximum rate increases allowed at each interval until the cap is reached.

If you are ready to move forward with prequalification, The Orlando Mortgage Company is available to support you. Our knowledgeable team is prepared to guide you through the process and ensure you are able to access any potential benefits, including assistance with loans or down payments.