You know when flexibility counts
Adjustable-Rate Mortgages
Do you need the flexibility of a lower initial monthly payment than offered by most fixed-rate mortgages? Do you plan on living in your home 10 years or less? Then an adjustable-rate mortgage (ARM) might be the appropriate financing solution for you. EverBank's mortgage experience and knowledgeable specialists can help you select the home financing solution that works best with your financial goals.
- We'll meet your needs—no matter what tune you're playing.
Adjustable-rate mortgages can offer you the following benefits:
- Generally the initial rates and monthly payments are lower than most fixed-rate mortgages.
- Choice of fixed initial rates from 1 to 10 years.
- Optional interest-only payments
, providing lower monthly payments from 3 to 10 years.
- Quick pre-qualification for qualified borrowers.
- Financing up to $1 million.
- The option to lock in interest rates up to 30 days prior to your loan's closing date.
Flexible monthly payments.
Competitive rates.
5-year Adjustable-Rate Mortgage
Rate: 5.625%
APR:3 6.252%
Should I consider the interest-only payment option on an adjustable-rate mortgage?
This really depends on your financial goals and cash-flow needs. We feel it's important to understand that while you have the option to pay only the interest on your mortgage for a select period of time, your monthly payments will increase after this term to include principal and interest. Of course, you have the option to refinance or pay your principal mortgage balance at anytime. Generally, the interest-only payment strategy works well for borrowers who:
- Require a larger home and desire to make the lowest possible initial monthly payment.
- Want to allocate money that would normally pay their mortgage principal to a college, retirement, or investment fund.
- Receive seasonal income or a large annual bonus such as corporate executives, small-business owners, and commission-based salespeople.
How can I be sure that an adjustable-rate mortgage is right for me and are there any associated risks I should be aware of?
With an ARM, you will pay an initial fixed monthly payment at a lower rate than you generally would with a fixed-rate mortgage. Once the initial fixed-rate period ends, your monthly payment will adjust periodically—increasing or decreasing depending on interest rate fluctuations. At which point, you could refinance to another ARM or a fixed-rate mortgage, which offers consistent monthly payments.
How can you use this feature to your advantage?
- You anticipate a rise in your salary that will allow you to pay more towards your principal in the future.
- You foresee a move within a short period and want to minimize your monthly mortgage payments during this time.
- You receive large lump sum bonuses or experience seasonal cash flow.
EverBank® Mortgage Specialists and home financing calculators can help you determine if this is an appropriate home financing solution for your situation.
I'm interested in applying for an adjustable-rate mortgage, what's my next step?
- EverBank offers the following flexible options to start your mortgage application or answer your lending questions: Get a quote and apply online or contact a Mortgage Specialist at: 877.436.4381.
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