Company Transfers: The Right Mortgage for People on the Move
If you or your spouse works for a company that often transfers employees to different locations, a 5/5 ARM (adjustable rate mortgage) Conforming Loan can help you enjoy lower monthly payments while suiting your need for mobility.
ARMs usually have lower interest rates to start than fixed mortgages. That translates into lower monthly payments. However, the rate will adjust, in the case of the 5/5 ARM Conforming Loan, at the 6-year mark and every 5 years thereafter. If you think you may have to move before that date, 5/5 ARM Conforming Loan may be a great option for you.
As with any ARM, the risk with a 5/5 ARM is that rate will go up in the 6th year. However, if you’re positive your company will transfer you before that date, you can pay less or get a bigger house and then sell prior to the rate change. Talking to a PenFed representative can help you determine if a 5/5 ARM Conforming Loan is right for you.