ARMs – Good Thing or Bad Thing?

Adjustable rate mortgages (ARMs) offer early rates that are lower than fixed rate mortgages. After the introductory period - usually in the first year – your rate is calculated to market conditions and is subject to potential increases. The increase on your rate may be capped by the terms of your loan by the year and also over the life of the loan.

The affordability of an ARM, especially during the initial period makes it an attractive option to home buyers. However, you should consider multiple factors before signing on the dotted line:

• Typically a good solution if you plan to stay in your home no more than 3 - 5 years
• Be confident in a worst case scenario that your future income would be enough to cover both the potential increase in rates and your monthly payments
• How comfortable are you with the risk factor?

Keep in mind that the first word of ARM is adjustable, as long as you are well informed, have a good relationship with your mortgage lender, and understand all the factors of an adjustable rate mortgage, you may find that this is the perfect mortgage for you.

Advanced Mortgage Services is conveniently located on the South Shore in Braintree, Norwell, & Plymouth.

For additional information on services offered by Advanced Mortgage Services please call 781-659-6555, 508-747-9520, 888-665-6345, or visit www.ams-loan.com. A Fair Housing and Equal Opportunity Lender, Advanced Mortgage Services is a fully insured and licensed Massachusetts Mortgage Lender and Mortgage Broker (license #MC3702.)