LOAN PROGRAMS - ADJUSTABLE RATE

There are many different types of adjustable rate mortgage programs (ARM) available to suit each individual borrower’s needs.  Contact us today to find out what is the right ARM program for you.

The following programs are the most popular because they offer a combination of fixed and adjustable rates for pre-determined period of times.

  • 1/1 Fixed to ARM
  • 3/1 Fixed to ARM
  • 5/1 Fixed to ARM
  • 7/1 Fixed to ARM

How the Fixed to ARM Loans Work:

After the initial fixed period of these loans, the interest rate is adjusted to the new rate which is equal to the index rate (which fluctuates constantly) plus the margin. The new rate is fixed for a predetermined period of time. The most common used indices are the LIBOR or TREASURY. The margin is fixed for the life of the loan. The new rate and adjustments are limited by the cap rates.

For example, for a 3/1 ARM program, after 3 years fixed rate, the new rate is applied. If the index at the time of adjustment is 3.00% and the margin is 2.25%, the new rate will be 5.25% and it will be fixed for one year before adjusting again.

Adjustment Caps:

All of the fixed to ARM loans have certain adjustment caps. There are 3 standard adjustment caps:

  • A first adjustment cap (following your initial fixed period of time)
  • Subsequent adjustment caps
  • A life-time cap

With the market's historically low interest rates, there is no reason to wait for tomorrow--and plenty of reason to act today. Contact us today and find out what is the right program for you!

 
 
 
Interested? Click HERE to find out how you can get your rate secured today!

Not the program you are looking for? Don’t forget to check out our other options.
Here are the some of our program highlights:
 
  • Stated Income/No Documentation (Perfect for self-employed individuals or borrowers who may have difficulties documenting income via traditional methods: 2 years of tax returns, pay stubs, and W2 forms)
  • 1st time home buyers
  • 2nd homes or vacation homes
  • Investment properties
  • 1-4 unit properties
  • Less than perfect credit
  • Interest only option