An adjustable rate mortgage, also know as a variable rate mortgage or floating rate mortgage, is a loan in which the interest rate on the note is periodically adjusted based on an index. Another common feature of this mortgage is that due to the high financial risk involved when interest rates rise, there are limitations on charges, known as caps. However, if the interest rates fall, the borrower will obviously benefit.
An adjustable rate mortgage may be the best choice if low payments in the near term are your primary requirement or if you plan to live in the property for only several years for the rates to rise. If interest rates are high and expected to fall, this type of mortgage loan will ensure that you enjoy lower interest rates without the need to refinance.
If you are looking for an adjustable rate mortgage, Ocean Pacific Capital, a 30-year old licensed California home loan mortgage company, can help you out. We offer low rates on home mortgage loans and the trusted, expert services that you deserve without the hidden home loan costs, and have access to over 130 lenders competing for your business.
Call us toll free today at 1-800-595-1474.