More information of Adjustable-Rate Mortgage (ARM)
The advantage of mortgages with adjustable interest rates (Adjustable-Rate Mortgages - ARM) is that you can benefit from lower official interest rates and thus pay less than with fixed mortgages.
However, it can also happen that the official rates go up and you end up paying more, so it is a 50/50 bet.
Chase Bank offers its adjustable-rate mortgages with a lower fixed rate initial term of between 5 and 10 years. Thus, during that first term, the amount of the monthly installments will always be the same and, from then on, the installment will be reviewed every 6 or 12 months to update the SOFR index, to which a differential will be added.
With this mortgage loan you can finance up to 97% of the value of the home, although if the deposit or down payment you contribute is less than 20%, you may have to take out private mortgage insurance (PMI)
The financial institution does not provide much information regarding the fees and expenses that apply, also because they depend on the state and even the county where you reside or where you want to buy your home. The best way to find out about them is to perform a simulation with the online tool provided by the bank on its website.
With this loan you can acquire a new or used home, whether it is your first residence or a second one for vacations.
If you prefer to opt for the peace of mind of always paying the same, you can also opt for a fixed-rate mortgage from Chase Bank.
Español: Hipoteca variable de Chase Bank