What is an ARM?

When most Americans purchase a home, they take out a special loan called a mortgage.

Mortgages come in a variety of shapes and sizes, so it’s important to understand your options and pick a product that’s a good fit for you.

First, mortgages typically amortize over a 15 or 30 year period. That means that at the end of the period, you are 100% done paying off your loan.

Second, there are two major varieties of mortgages: fixed rate mortgages and adjustable rate mortgages (or ARMs). The 30-year fixed rate mortgage is fairly unique to the United States. Most homeowners in other countries only have access to adjustable rate mortgages.

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The most important thing is that you understand how the different options work and determine which is the best fit for you. Currently, about half of Landed customers land on a fixed rate mortgage, while the other half decide that an adjustable rate mortgage works best for their family.

Note that you should always seek advice from licensed professionals before making a decision on which mortgage product is right for you and your family. Nothing in this blog post is meant to be construed as advice.