An adjustable rate mortgage, or ARM, is a mortgage rate that adjusts with the current market rates. Although this may not be the safest way to go, it has a rate that is always two or three percent lower than a fixed rate mortgage. Within the adjustable rate mortgage you can choose specific types, such as choosing a mortgage rate that is fixed for a whole year, but the next year it may adjust depending on the market conditions. It adjusts year to year, rather than month to month. A few other adjustable rate mortgage types are the CD's and the Treasury ARMs. The CD, or certificate of deposit, has a maximum interest rate of one percent every six months, meaning that if the market increases two percent in six months, the CD will allow you to only go up one percent rather than two. The CD also reacts exactly with the market rates. The other type is the Treasury Average and Spot ARM. These work slower than the CD, therefore giving you time to react to the market.

More Ocean City Maryland Mortgage Specialists.com Loan Products Information:

• Fixed rate mortgages
  
• Adjustable rate mortgages
  
• Standard ARMs and the differences
  
• Reverse Mortgages
  
• Balloon Mortgages
  
• Interest rate buydowns
  

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Getting a loan is a very simple process with us. Whether you are refinancing or purchasing a new home all you need to do initially is send us two years of w2’s, one month of paystubs, and a copy of your homeowner’s insurance policy. We can then approve you for a loan. It is truly that simple. The mortgage broker will be impressed and have proven to him your ability and desire to pay the loan. For any further questions on what to send when you make contact with a loan officer, contact Ocean City Maryland Mortgage Specialists.com.

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