More information of Adjustable-Rate Mortgage (ARM)
Financing the purchase of a home with an adjustable rate mortgage allows you to benefit from lower interest rates in the future, but it also hurts you if interest rates go up.
U.S. Bank offers its own adjustable or variable rate mortgage, with the typical fixed rate initial term offered by all banks in the United States.
This first term can be 5 years (5/1 ARM) or 10 years (10/1 ARM), and the interest rate applied is lower than with fixed rate mortgages, so it is quite interesting if you plan to pay back the money in a few years or do not think you will live more than 10 years in the same house.
With this mortgage you will be able to obtain a maximum amount of up to 95% of the value of the property you are going to buy. However, if you want the money you contribute as down payment or down payment to be less than 20%, it is likely that you will have to take out private insurance to cover the extra risk assumed by the bank.
In order to apply for the U.S. Bank adjustable-rate mortgage loan, you will have to meet several requirements, such as having a FICO credit score of at least 740 points and other income conditions that will be detailed by the bank when you apply for a mortgage.
Español: Hipoteca con interés variable de U.S. Bank