St. Petersburg Adjustable Rate Mortgage Calculator

ARM Mortgages, also known as adjustable-rate mortgages, can still be beneficial in certain situations, even though they are not as common as they used to be. When compared to fixed-rate loans, adjustable-rate loans offer a few advantages for the right borrower.

One advantage of adjustable-rate mortgages is the lower interest rate at the beginning of the loan term. Usually, this initial rate is lower than that of fixed-rate loans. However, it’s important to remember that this lower rate will eventually go up based on an external index. So, borrowers who expect to pay off their mortgage quickly, like those who have saved a significant amount from selling a previous home, can make the most of the lower introductory rate. By paying off the entire loan amount before the rate increases, they can save money in the long run.

There are different types of adjustable-rate mortgages (ARMs) available for borrowers to select. The primary categories consist of ARMs that adjust yearly and those that adjust every six months. Moreover, most ARMs come with caps to restrict how much your monthly payment can go up, preventing a sudden spike in the interest rate.

If you are thinking about moving within 3-5 years after receiving your loan, an adjustable-rate mortgage might be a good option for you. The professionals at The St. Petersburg Mortgage company will help you assess the current market conditions, your specific objectives, and your risk tolerance before choosing this loan type.

You can use our calculator to get an idea of your monthly payments with an adjustable-rate mortgage. This tool considers the maximum rate increases permitted at each interval until the cap is reached.

When you’re all set to proceed with prequalification, count on The St. Petersburg Mortgage Company for help. Our experienced team is ready to guide you through the process and make sure you can take advantage of all the benefits, such as support with loans and down payments.