Refinance - Adjustable Rate Mortgages (ARMs)

Refinance home loans from Countrywide Bank’s Full Spectrum Lending Division come in three basic varieties: adjustable rate, fixed rate and combination rates.

An Adjustable Rate Mortgage is just that – adjustable. Its interest rate varies periodically according to the index on which it's based.

Countrywide links its ARM loans to the LIBOR index, one of the most popular home loan indices used today. Our adjustable rate mortgages come with interest rate caps that limit how much a rate, and therefore a payment, will change each year and over the life of the loan.

Reasons to consider an adjustable rate mortgage when refinancing:

• Increase Upfront Savings — If you're planning to stay in your home or keep your loan for the short term, 5 years or less, lower upfront fees and monthly payments typically make an adjustable rate mortgage cost less than a fixed rate loan.

• Maximize Your Buying Power — You can use an adjustable rate mortgage refinance loan to obtain the highest loan amount for which you qualify, up to $500,000, and, on a case-by-case basis, even more.

• Minimize Initial Payments — You can use an adjustable rate mortgage refinance loan to obtain a lower initial monthly payment and lower upfront costs than a fixed rate loan.

• Get Approved — Adjustable rate mortgages can make getting approved easier because of more flexible underwriting criteria than many fixed rate loans.

Is a refinance into an ARM right for you?

When refinancing, there are many factors that determine which loan is right for you, including:

• How long do you plan to live in your home?

• How large of a loan do you need?

• Can you afford the payments if interest rates increase?

The benefits of an ARM loan often outweigh the risks of higher interest rates, since adjustable rate mortgages typically begin at lower rates than fixed rate loans. However, if you plan to stay in your home for longer than five-ten years after you refinance, consider a fixed rate or combination rate loans.

Not sure what is the right option to refinance your home loan? Call 1-800-909-8217 and let one of our experienced Loan Consultants explain each available option to you. The process is quick, easy and free. There's no obligation! At Countrywide’s Full Spectrum Lending, we won't recommend a refinance home loan unless we know we can help you meet your needs and realize your dreams.