Most people only stay in their mortgage for five to seven years. Why not go for the lowerest mortgage rate during that time period? Doing so can translate into thousands of dollars saved.
With an Adjustable Rate Mortgage, more of your payment goes toward the principal balance, and less goes to interest, so you pay down your Utah mortgage faster, saving you thousands of dollars over the life of your mortgage loan.
ARMs no longer feature pre-payment penalties, so you can easily refinance or pay your loan down or pay it off early. You'll never have to worry about a big balloon payment either, today's ARMs are usually based on a 30 year repayment schedule. It is also common to get a hybrid ARM, these type of ARMs have an initial fixed rate period that will last five, seven, or even 10 years. After that time period, the rate will adjust more frequently.
A lower mortgage rate means a lower payment, which means more cash in your pocket each month. An adjustable rate mortgage, or ARM, may also help to increase the amount you qualify for when purchasing a new home in Salt Lake City, Utah.