Fidelity Funding

Fidelity Funding offers hybrid ARMS - adjustable rate loans that carry a fixed interest rate for 5 or 7 years, then the interest rate changes each year based on a market index. ARMs typically start with lower monthly payments than fixed-rate loans, but once the fixed period ends, the payment will change - either up or down - as the interest rate changes with market conditions. Because your payment and interest rate can increase, you should be prepared financially for any possible increase in rates and payment, if you're considering an ARM. An ARM could makes sense for you if you: Plan to sell your home or refinance before the end of the initial rate period and therefore aren't concerned about possible rate increases Anticipate your income rising enough in the coming years to cover higher mortgage payments if interest rates go up. Want the initial lower payment that the ARM offers to qualify for a larger loan, but can afford to pay the fully indexed rate Believe that mortgage interest rates may decline in the future and can accept the risk if they don't. When shopping for a mortgage, a 5/1 or 7/1 ARM can be a good choice for some borrowers. Talk to your Fidelity Funding loan officer to see if an adjustable rate loan makes sense for you.