Everything You Need to Know About the FHA ARM

Did you know FHA loans actually have an adjustable-rate option? The popularity of FHA home loans has exploded since the dip in the economy, with FHA loans now accounting for almost 30% of mortgages in the United States.

Now Is The Time For an FHA Refinance

With interest rates aggressively low, now is a great time consider refinancing with an FHA adjustable-rate mortgage (ARM). Whether you're buying your first home, looking into a fixer-upper, making your home more energy-efficient, or just looking to refinance, a government-backed FHA ARM may be the best option to help you reach your financial goals.

Top 7 Reasons You May Want an FHA ARM

1. An FHA Loan is the the easiest type of real estate mortgage loan to qualify for.
2. Refinancing with an FHA ARM will lower your rate and payment for the initial fixed-rate period. After this initial fixed-rate period, the mortgage rate adjusts based on the LIBOR index and other market factors. Due to a down market and low interest rates, ARM's are actually adjusting down right now.
3. It is also wise if you are planning on moving or refinancing before rates adjust higher. This allows for a higher loan without paying the cost of a longer fixed-rate period. The amount saved from the lower payment during the fixed period is greater than the cost of refinancing if later desired.
4. In addition to the benefits a standard ARM offers, an FHA ARM enables a down payment of 3.5% on purchases.
5. FHA loans allow you to refinance 97.75% of your home's value.
6. FHA cash-out refinance loans allow you to take out up to 85% of your home's value.
7. Finally, FHA also allows seller concessions up to 6% of your home purchase price.

FHA Home Loans Offer A Great Choice In Today's Market

Whether you are a first-time home buyer or just looking to take advantage of low mortgage interest rates, refinancing with an FHA ARM could save you money and help achieve your financial goals. If you're considering an FHA loan, Quicken Loans offers a Rate Break for FHA - a 1-year 1% reduction in your mortgage rate! Seize this opportunity to benefit from the current market and get started by talking to a trusted mortgage professional.

Jordan Fylonenko is a writer who specializes in articles about FHA Loans, Mortgage Refinance, VA Loans and other home-buying related information.