Also called a variable-rate mortgage, the same rules to ensure mortgage has an interest rate you can use the APR the life of the loan request otherwise and the loan.
Points An amount paid to with the best possible rate.
Learn more about APR vs. An amount paid to the lender, typically at closing, in order to lower the interest rate. Lower credit requirements: Credit requirements for example, below average credit scores are usually lower than those of conventional mortgages. You may get a lower interest rate for the initial portion of the loan term, but your monthly payment may fluctuate as the result of any interest rate changes. You might consider an ARM if you plan to sell the home before the rate adjusts, or if you expect that your income will increase to compensate for potentially higher payments.
