Home loans - Adjustable Rate Mortgage Loan
A mortgage that fits you:
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5/1 ARM Conforming 
Rate:
Call for Rate
Origination: 1.0% Fee
APR*:
Call for Rate
3/1 ARM Conforming
Rate:
Call for Rate
Origination: 1.0% Fee
APR*:
Call for Rate
Notes: Rates and fees will vary depending on the terms of the loan.
*Annual Percentage Rate
Best Choice If:
- You plan to move or refinance after a certain number of years
- If you are an investor who wants to speculate on rate trends
- If you want the lowest rate at signing time
- You need a loan for a second home or an investment property
Advantages:
- Such programs often offer the lowest rate available at time of signing
- Allows people to take advantage of rate declines without having to refinance
- Ideal for people who are likely to move within three to seven years
Disadvantages:
- If prevailing rates head up, you can have a rate climb of 2% in a year
- Not available for loan amount greater than 90% of the property's value
This is one of many programs we
offer. Please visit us or
contact a mortgage
specialist to see if it's perfect
for you. You can also apply
on line right now.
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The adjustable rate mortgage (ARM) has a fixed rate for the first three, five or seven
years of the loan. After this initial period, the rate becomes variable, and is based
on the one-year T-bill index (hence, names like "3/1" or "5/1").
If you want to buy a vacation home or an investment property, the ARM could be your most
competitive rate choice. Though keep in mind that credit history, how you design your
loan, and the property itself, can affect rate offers.
Such loans allow a loan-to-value amount of up to 90%, so other programs may allow you to
buy a home with less down payment. The good news with these adjustable rates is
that--in a worst case scenario--your rate can never go up more than 6% over the life of the
loan. And the adjustable rate may never go up more than 2% in a year. This could
be a big comfort should prevailing mortgage rates ever skyrocket.
These loans don't have the most strict credit requirements, but it's important the
property be in good repair, with no remodeling or construction at the time of the loan.
Manufactured homes are not eligible for this type of mortgage; however, the minimum loan
amount of $40,000 makes it a good choice for people who wish to refinance an existing
mortgage. The maximum loan amount is $359,650 for a single dwelling. Properties
with up to four units are acceptable (with a maximum loan amount of up to $691,600), which
makes it a good option for property investments.
Go here to use our
calculator which examines how term and rate can affect your payments. We also have
a calculator that helps
borrowers determine home much home they can afford.