When looking for your first home, or even a second home or income property, one of the biggest factors in your decision is what your down payment would be. Good news! Fannie Mae has recently lowered its down payment requirements for adjustable rate mortgages (ARMs) to make purchasing a home that much easier.
What is an ARM?
An adjustable rate mortgage is a mortgage option where the interest rate fluctuates depending on market trends. This means that while you may start out with one percentage rate for your mortgage, that may increase or decrease as time goes on. Usually your ARM will be fixed in its current rate for up to 10 years before it can be adjusted.
What is the new down payment requirement?
You can now purchase a home with a down payment as low as 5%. This is additionally beneficial if you are looking to refinance your ARM before its current rate changes. This is additionally beneficial for those that are looking to refinance - they will need less equity.Ready to apply? If you are looking to take advantage of this new development in ARMs, be sure to contact the home loan experts at Mortgage Advisor to check your eligibility and discuss your mortgage options.