Academy Mortgage has observed a new trend in the financing sector among homes priced from the $700,000s to $1 million or more. There has been a comeback in adjustable rate mortgages within this market, otherwise known as ARMs. There is a percentage difference in interest rates between ARMs and jumbo mortgages, enabling ARM buyers to save a significant amount of money over the lifetime of the loan. For example, if you are purchasing a $1 million home, an ARM can save you several hundred dollars a month. When this is added up for seven to 10 years, home owners will have saved a substantial amount of money.

ARMs are commonly misconceived to be ballooning mortgages that will increase to the point where you won’t be able to afford your payment. On the contrary, rates are most commonly fixed for 7 years, and allow you the flexibility of refinancing at the end of the loan term. ARMs also have payment caps limiting the amount the interest rate is allowed to change during a certain time period.

An ARM is a great alternative to jumbo and fixed-rate mortgages, and is most appropriate for buyers who plan to refinance when the fixed period ends. They are also ideal for buyers not planning on owning their home for longer than the initial fixed-rate period, because money saved can be used as a down payment on their next home.

To find out more about ARMs and to find out how Academy Mortgage can help you finance your home, visit

Academy MortgageEqual Housing Lender. (c)2013 Academy Mortgage License #3113. GA Lic. # 20505. This is not a commitment to lend. Academy Mortgage Atlanta: 5565 Glenridge Connector,  Suite 400. Atlanta, GA 30342. Georgia Residential Mortgage Licensee.

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