# #

Hawaii Option ARM & Adjustable Rate Mortgage Loans

Get a great rate on an option ARM in Hawaii.We can also refinance your current Mortgage. Apply online or call one of our Hawaii brokers at 855-529-5222

Hawaii adjustable rate mortgage and Option ARM loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage and could allow you to buy a more expensive home. Adjustable Rate Mortgages (ARMs) have become one of the most popular and effective tools for helping some prospective homebuyers achieve their dream of homeownership. Developed during a time of high interest rates that kept many people out of the housing market, the ARM offers lower initial rates by sharing the future risk of higher rates between borrower and lender.

  • An adjustable rate mortgage (ARM) is often less expensive than a fixed-rate mortgage.
  • A great mortgage loan for short term ownership (three to seven years).
  • Refinancing is always available if your financial situation changes

The interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.

There are also mortgages that combine aspects of fixed and adjustable rate mortgages - starting at a low fixed-rate for seven to ten years, for example, then adjusting to market conditions. Ask your mortgage professional about these and other special kinds of mortgages that fit your specific financial situation.

An adjustable rate mortgage, variable rate mortgage or floating rate mortgage is a loan where the interest on mortgage is periodically adjusted based on an mortgage index and this is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Payments made by the borrower may change over time with the changing interest They can be used where unpredictable interest rates make fixed rate loans difficult to obtain.

This loan is characterized by its index and limitations on charges (caps on loans). In many countries, adjustable rate mortgages are the norm, and in such places, may simply be referred to as mortgages.

An added benefit of this type of loan is that every month when your loan re-amotizes, the payment is calucated only on the the prenciap that is left on the loan, thus paying your mortgage off faster is easier to do if you make extra payments. Many investors or person in high commisioned jobs usually preffer the adjustable rate mortgage as they can make extra payments into the loan and aquiring equity faster since the pricipal payments are more easily payed down.

This can be an excellent choice of financing under certain conditions, such as rising income expectations, high interest rates, and short-term homeownership. But because payments and interest rates can increase, either steadily or irregularly, homebuyers considering this kind of mortgage need to have the income to keep up with all possible rate and/or payment changes.

There are also loans that combine aspects of fixed and ARMS - starting at a low fixed-rate for seven to ten years, for example, then adjusting to market conditions.

As professionals in the mortgage lending industry, we've built our reputation on providing outstanding service to our clients. That means you can count on us to always look out for your best interests and to keep you informed throughout every step of the lending process. Please do not hesitate to call if you have questions about the information you find here on our web site.

© copyright 2001-2012 Hawaiihomeandloan.com

Site Map - Hawaii home loans - Contact