Is a Freedom Mortgage Home Equity Loan or Adjustable Rate Rider Mortgage Right for You?
As a homeowner, you have powerful financial tools at your fingertips. Two popular options that can help you access cash or adjust your loan terms are the Freedom Mortgage home equity loan and the adjustable rate rider mortgage. Understanding the differences between these can help you make the right decision based on your goals, risk tolerance, and future plans.
What is a Home Equity Loan with Freedom Mortgage?
If you’ve built equity in your home, you can use that equity to borrow funds with a Freedom Mortgage home equity loan. This loan type typically offers a lump sum at a fixed interest rate, allowing you to budget with confidence.
Key advantages include:
Fixed interest rate
Predictable monthly payments
Ideal for major one-time expenses like home renovations or debt consolidation
Not all Freedom Mortgage customers may be eligible for a traditional home equity loan, but similar options such as cash-out refinancing may be available.
How Does an Adjustable Rate Rider Mortgage Work?
An adjustable rate rider mortgage is an agreement attached to your mortgage contract that allows your interest rate to change periodically after an initial fixed-rate period. This rider is common with adjustable-rate mortgages (ARMs).
Here’s what to consider:
Lower introductory rates compared to fixed-rate loans
Rates can increase or decrease based on market indexes
Best for short-term homeowners or those expecting future income growth
This mortgage option may offer lower initial payments but carries the risk of increasing costs over time.
Which Option is Best for You?
Choose a Freedom Mortgage home equity loan if you need a lump sum with stable payments for the life of the loan.
Opt for an adjustable rate rider mortgage if you want to benefit from low initial payments and are comfortable with potential rate changes down the road.
Final Word
Both options—whether it’s leveraging a Freedom Mortgage home equity loan or considering the flexibility of an adjustable rate rider mortgage—offer different benefits for different financial needs. Speak with a qualified Freedom Mortgage representative to evaluate what aligns best with your personal situation and future plans.