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National City Mortgage
Benefits of National City Mortgage
What is a Mortgage?
Fixed Rate Mortgages
Adjustable Rate Mortgages
Affordable Housing Programs
Additional Mortgage Options
New Home Construction Programs
The Benefits of Home Equity
Why Refinance With National City
Payment Options
Assistance to Keep Your Home
Assistance Option When Giving Up Your Home
National City Mortgage Insurance Options
Mortgage Life Insurance
Mortgage Pre-Approval
What You Need to Buy a Home
Application Process
Frequently Asked Questions

Adjustable Rate Mortgages

If flexibility in your payments and lower rates up front are appealing to you then an Adjustable Rate Mortgage is the choice for you. Unlike fixed rate mortgages, your monthly payments are at the mercy of the market. If the interest rate fluctuates up and down, so do your payments. However, if you think that the market is going to stay pretty steady for the length of your mortgage this is a risk over which you may very well win.

An adjustable rate mortgage is not only good for those who want to take a chance that their rates will go down, it is also good for those who want a larger home, but can’t afford the higher up front cost of a fixed rate mortgage. With an adjustable rate mortgage, the introductory rate is lower and fixed until that time period has expired. Via this mortgage option, you can purchase a grander home at a fraction of the cost.

Adjustable rate mortgages are also good for those who know that their salary or household income will increase in the near future. This allows you to afford the intro costs and be confident that you can cover the monthly payments once they rates become adjustable.

Similarly if you know you will be staying in the home for a limited amount of time (usually less than seven years) an Adjustable Rate Mortgage may be right for you. With an ARM, the introductory period is generally anywhere from one to seven-years, sometimes as high as ten, but usually within the one to seven range.

If you sell your home before then, you have avoided paying the adjusted rates and this is usually beneficial because the introductory fixed rate is usually quite low.


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