The initial interest rate of an Adjustable-Rate Mortgage (ARM) is typically 2 percent to 3 percent lower than traditional fixed-rate mortgages. ARMs starts at one rate of interest then, during the life of the loan, this interest rate goes up or down, or "adjusts", according to a nationally published index. As this index changes, so does your interest rate. Consequently, the amount of your monthly payment also changes. Interest rate adjustments on ARMs are generally limited or "capped" on a yearly basis and over the loan term.

An ARM may be a good option for you if:

• Interest rates are anticipated to be stable or decrease in the near future
  
• You plan to be in your home for less than five years
  
• Your income is expected to increase in the next few years
  
• You are comfortable with a bit of a financial risk
  
• You don't mind an occasional change in your
  monthly mortgage payment

However, you need to take a close look at the details of Adjustable Rate Mortgages, we can advise you about the specifics of choosing an ARM.

So call us at 303-758-3755 or go here to get a pre-approved mortgage with Alpha Mortgage.

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