Question:

When the adjustable rate mortgage APR will be low?

Answer:

APR stands for Annual Percentage Rate.

For an adjustable rate mortgage APR will stay the same or be lower than the ARM's initial rate if at the time of closing the index the ARM rate is based on is very low and is expected to stay low.

Although the lender's fees will be reflected in the APR for the adjustable rate mortgage, it is not unusual that the APR of an ARM is lower than the APR of the fixed rate mortgage counterpart when the index is low.

If the base index is high and is expected to stay high or rise, the APR of the adjustable rate mortgage may get higher than the FRM's APR.

Also, the APR of the adjustable rate loan will depend on your credit score. So, the higher score, the lower APR.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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