An Adjustable-Rate Mortgage (ARM) is structured with a specified fixed-rate at the beginning of the loan term. Once the fixed period is completed, rates can fluctuate according to the market. Prospect Financial Group, Inc. offers a wide range of Adjustable-Rate Mortgages to fit your unique financial needs, including 3/1 ARMs, 5/1 ARMs, 7/1 ARMs and 10/1 ARMs.

The Benefits of an Adjustable-Rate Mortgage:

Reduced Rates

Adjustable-Rate Mortgages commonly have the lowest possible mortgage rate. ARM rates, like that of a 5/1 ARM, can be nearly 1% lower than that of a 30-year fixed-rate mortgage. The 5/1 ARM rate would be fixed for five years, giving you the opportunity to save thousands of dollars in interest that you could use to pay off existing credit card debt, put towards retirement savings or save for you next investment. After 5 years, the first initial adjustment will take place. This adjustment can adjust up or down a maximum of 5 points, with every year following only 2 points with a life time adjustment of 5. The rate can also never adjust below a margin of 2.25%. All ARMs are structured over a full 30 year period.

You Plan to Sell the Home after Several Years

If you plan to sell the home before the Adjustable-Rate Mortgage reaches its adjustment period, you may be able to save more money than with a fixed-rate loan. For example, if a job transfer is likely, an ARM would be a better solution than a higher rate 30-year fixed-rate mortgage. The lower initial rate of an ARM can be a good strategy for professionals who relocate regularly, homeowners who plan to upsize or downsize, and anyone who will live in their home for just the initial fixed term.

You Want a Larger Home

Adjustable-Rate Mortgages often times do not require as large of a down payment as a fixed-rate loan would. If a borrower chooses to apply for an ARM, they may be able to buy a more expensive house than they typically would have been able to afford.

Call 

Michael Campos

Mortgage Loan Officer

Mortgage Banker- A Direct Lender - Jumbo Specialist

3702 Via De La Valle STE 202C

Del Mar, CA 92014

Cell/ Text: (858) 699-7751

Office: (858) 764-1442

Fax: (619) 574-6735

NMLS: 445764 | CABRE: 01296938