Adjustable-Rate Mortgage (ARM)

An Adjustable-Rate Mortgage (ARM) from Noble Home Loans offers a dynamic financing option where the interest rate adjusts periodically based on specific indices. Initially, ARMs feature a lower interest rate than fixed-rate mortgages, making them an attractive choice for those who anticipate a short-term stay in their home, expect future income growth, or find current fixed mortgage rates prohibitively high. Key components of an ARM include an index, a margin, an interest rate cap structure, and an initial fixed-rate period. After the initial period, the rate adjusts according to the index plus a set margin, with changes moderated by caps that limit annual and lifetime interest rate fluctuations. Noble Home Loans provides various ARM products, including standard 1-year ARMs and hybrid ARMs with initial fixed periods of 3, 5, 7, or 10 years, each tailored to different homeowner needs and financial scenarios.