A Spencer Adjustable Rate Mortgage (ARM) is ideal when you only plan on keeping your home for 3 to 10 years or when you'd rather pay less now, but expect your income to increase in future years.
ARMs usually start out with a lower interest rate than fixed rate mortgages and remain constant for a specified amount of time.After the initial period, the rate is adjusted for a specific period of time, and can go up or down according to the index, margin and adjustment period/lifetime caps stated.
An adjustable rate with Spencer Savings means:
• Interest rates change periodically based on an index
• Initial rates usually less than traditional fixed rates
• Annual/Lifetime cap on interest rate changes
Equal Housing Lender | Member FDIC | Spencer Savings Bank | Subject property must be in New Jersey