Adjustable Rate Mortgage Loans
An adjustable rate mortgage, often known as an ARM, is a mortgage with an interest rate that is linked to an economic index. The interest rate, and your payments, are periodically adjusted up or down as the index changes. Whereas, with a fixed rate loan, a borrower "locks in" to a specific interest rate and pays that rate for the life of the loan unless he or she decide to refinance.
ARMs aren't for everybody. They are ideal for borrowers with stable increasing income potential, since the rates for these mortgages are usually lower during the first few years. Homeowners who are looking for short-term purchases also enjoy the adjustable rate mortgage option.
Contact an Alaska USA mortgage originator today to see if an ARM is right for you.
Once you have met with a loan originator and reviewed the variety of loan options, you can move forward and get prequalified. Your loan originator will review your credit report and explain how your credit affects your purchasing power.
Your loan originator will give you a list of documents that you need to bring in to be reviewed by local underwriters. Common documents requested are:
Alaska USA may ask for additional items that are required based on the specific loan that you choose based on your financial status or situation.
Don't forget, the choice is yours when it comes to selecting the title and escrow agency, acting as the neutral party for you and the seller.