Six-Month Adjustable-Rate Mortgage

This adjustable-rate mortgage (ARM) offers a low initial interest rate for the first six months with an interest rate that adjusts every six months thereafter. The rate caps per adjustment can be 1 percent or 2 percent; the lifetime adjustment caps can be 4 percent, 5 percent, or 6 percent. This type of mortgage may be right for you if you anticipate a rapid increase in income over the first few years of your mortgage. That's because it lets you maximize your purchasing power immediately. It may also be the right mortgage for you if you plan to live in your home for only a few years.

The interest rate is tied to a published financial index. When comparing ARMs that have different indexes, look at how the index has performed recently. Your an approved lender can provide information on how to track a specific index and how to review a 15-year history of the index.


-- Maximizes your buying power immediately, especially if you expect your income to rise quickly in the next few years.
-- Lets you select an index that meets your financial needs.
-- Easier to qualify for due to a low interest rate and a 1 or 2 percent annual rate cap.

Some six-month ARMs let you convert to a fixed-rate loan at certain adjustment intervals. Ask your Fannie Mae approved lender which of their six-month ARMs include this option. Your lender can also provide further specifics about this mortgage option.


-- You can get a six-month ARM with a term of 10 to 30 years. Typically, they are 10, 15, or 30 years.
-- Can be used to buy one- to four-family, owner-occupied principal residences including second homes, investment properties, and condos, co-ops and planned unit developments.
-- Manufactured homes are also eligible. (Manufactured housing units must be built on a permanent chassis at a factory and then transported to a permanent site and attached to a foundation.)


[ Back To Real Estate Glossary ]

We will

Savannah Multi-List Service is a large Internet real estate site with thousands of homes for sale and rent with photos and descriptions. All listings on www.neighborhoodrlty.com are pulled directly from the Savannah Multi-List Service. Any mortgage information supplied on www.neighborhoodrlty.com is subject to credit approval. Mortgage rates are not guaranteed and use of any particular lender is not required. For certain bonuses and promotions specific lenders and/or closing attorneys may be required; all interested parties should verify this information before submitting an offer on any property. For all new construction listings, the builder may at any time, and without prior notice or explanation, exercise creative construction and/or variance. All prices are subject to change. Status of properties not guaranteed. Please check status prior to submitting offer. All information provided on www.neighborhoodrlty.com is deemed reliable but is not guaranteed and should be independently verified. Neighborhood Realty is not responsible for or liable for misinformation, typographical errors, misprints, or other errors. Neighborhood Realty does not discriminate based on race or color, national origin, religion, sex, familial status or handicap.


Real Estate Websites by iHOUSEweb, Inc. ®

Site Admin Menu