Convertible Adjustable Rate Mortgages

Convertible adjustable rate mortgages (ARMs) are adjustable rate mortgages that can be switched to fixed rate mortgages during a set period of time.

Convertable ARM Details    

If interest rates look like they will increase in the future, securing a fixed rate will allow you to avoid the increasing costs. In order to transfer, you will have to pay a fee to your lender. If interest rates are extremely volatile, you can choose to fix your mortgage at the lowest interest rate that occurs over the seven days prior to the time when you make your request.

With adjustable rate mortgages (ARMs), you usually have the option to convert to a fixed rate mortgage only in the introductory period. This period usually lasts around six months.

Convertible adjustable rate mortgages allow a borrower to pay low interest rates associated with ARMs for a period of time before securing the certainty of a fixed rate mortgage.