Adjustable Rate Mortgages (ARMs) Kansas

With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.

Local Companies

Alpha Mortgage
013-498-8589 X 228
10901 Lowell
Overland Park, KS
Priority Mortgage
(316) 721-7700
900 N Tyler Rd Ste# 12
Wichita, KS
First Horizon Home Loans
(316) 264-9969
800 E 1st St N Ste 310
Wichita, KS
All Credit Mortgage
(316) 266-4859
333 N Waco St
Wichita, KS
MetLife Home Loans
(316) 264-9969
800 E 1st St N Ste 310
Wichita, KS
1st Metropolitan Mortgage
888-913-GREEN
7201 W 129th Street
Overland Park, KS
BankMortgageSolutions
866-603-3208 x 7858
14425 College Blvd ste 100
lenexa, KS
Beneficial Mortgage Co of Kansas Inc
(913) 788-3500
7549 State Ave
Kansas City, KS
Capitol Federal Savings
(620) 342-0125
602 Commercial St
Emporia, KS
Eagle Nationwide Mortgage Company
(913) 724-3320
15604 Pinehurst Dr
Basehor, KS

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With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.

 

 

Adjustable Rate Mortgages

At-A-Glance

Pro Con
Lower initial interest rates Lower rate means you potentially assume more risk
If interest rates remain steady or decrease, could be less expensive over time If interest rates increase, you’ll be faced with higher monthly payments in the future

 

 

TIP:  Before deciding that an ARM is right for you, ask yourself these questions:

  • Is my income likely to rise enough to cover higher mortgage payments if interest rates go up?
  • Will I be taking on other sizable debts, such as a loan for a car or school tuition, in the near future?
  • How long do I plan to own this home? (If you plan to sell soon, rising interest rates may not pose the problem they do if you plan to own the house for a long time.)
  • Can my payments increase even if interest rates generally do not increase?


The Basic Features

 

The Adjustment Period: With most ARMs the adjustment period occurs every one, three or five years, resulting in a change in your interest rate and monthly payment.

The Index: Most lenders tie ARM interest rate changes to changes in an index rate. These indexes usually go up and down with the general movement of interest rates, making your monthly payment amount rise or fall accordingly.

The Margin: To determine the interest rate on an ARM, lenders add to the index rate a few percentage points called the margin. The amount of the margin can differ from one lender to another, but it is usually constant over the life of the loan.

This information is adapted from "Consumer Handbook on Adjustable Rate Mortgages" published by the Federal Reserve Board and the Office of Thrift Supervision.

 

Published on January 25, 2007

Read full article at realestate.com

Featured Local Company

Alpha Mortgage

013-498-8589 X 228
10901 Lowell
Overland Park, KS
www.ifyouneedmoney.com

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