With an adjustable-rate loan, your interest rate is fixed for the first 5, 7, or 10 years (depending on your term). After this initial period, your interest rate may adjust every 6 months based on current market rates after that. You'd possibly have a lower interest rate and Annual Percentage Rate (APR) for the initial period of an adjustable-rate loan than you would with a fixed-rate loan.
With a fixed-rate loan, your interest rate won't change and your payment will stay the same month to month. Fixed-rate loans allow you to plan exactly how much you'll pay each month throughout the life of your loan.
With an adjustable-rate loan (also referred to as an adjustable-rate mortgage or ARM), your interest rate is fixed for the first 5, 7, or 10 years (depending on your term). After this initial period, your interest rate may adjust every 6 months based on current market rates after that. You'd possibly have a lower interest rate and Annual Percentage Rate (APR) for the initial period of an adjustable-rate loan than you would with a fixed rate loan.
Historically, homebuyers have chosen an adjustable rate when interest rates were high. The initial lower rates of an ARM – resulting in smaller monthly mortgage payments – made homeownership more attainable.
While you can plan for the fixed period of your ARM, your payments could increase (or decrease) once you reach the adjustable period of the loan. It’s important to know if you’ll be prepared for a higher monthly payment.
Yes. Ally defines a modular home as "a factory-built home constructed to the state, local, or regional building codes where the home will be located." Modular homes are considered the same as single-family residences.
Conforming loans (loans adhering to government agency guidelines, at amounts up to $647,200 in most areas, and $970,800 in high-cost areas): There are no set maximum acreage limits on conforming loans. However, certain property types don’t qualify as conforming loans including, but not limited to, commercial, income-producing, or agricultural-type properties, such as farms, ranches, or undeveloped land, regardless of size.
Yes. Cash-out refinances are available for both conventional and jumbo loans with no restrictions on how the funds can be used.
With a cash-out refinance, it doesn’t mean you can withdraw all your home equity. Instead, lenders limit withdrawals to a set percentage of equity in cash. Typically, this is capped at 80% of your total loan-to-value (LTV) ratio.
Yes. Leverage your home's equity and get cash to use however you want, whether that's making home improvements, consolidating debt, or paying for school.
