If you’re refinancing a home and want lower payments than a fixed rate mortgage may provide, consider an adjustable rate mortgage, or ARM, from PNC Mortgage. With an ARM, you’ll start out with a low rate and after a few years, your rate will reset with a new rate that can be either higher or lower depending on market conditions at the time the adjustment occurs. After the first rate adjustment, your interest rate can change each year until you pay off your mortgage.
Key Features and Benefits
- For home buyers with a good credit history
- Ideal if you’re expecting an increase in income, or don’t plan to own the home for a long period
- Select from1-, 3-,5-,7- or 10-year periods during which the interest rate remains unchanged, followed by 1-year periods in which the interest rate may increase or decrease on an annual basis resulting in a change in your monthly payment amount
- Can be used for both primary and second homes, investment properties too.