| Adjustable Rate Mortgages | ||
| Loan Program | Reason to Choose it: | Key Features: |
| Basic ARM | You want to start with a low payment. | As little as 5-10% equity in home; rate adjustments each 6 months or 1 year. |
| Basic ARM with Reduced Rate Option | You want to start with an extra low rate. | Reduced rate in exchange for limits on refinancing and early principal reduction for first 5 years. |
| Fixed Period ARM | You plan to move or refinance again in a few years and want the security of a fixed rate for that period of time. | Fixed rate for 3, 5, 7 or 10 years, then adjusts annually based on a financial index. |
| Fixed Period ARM with Reduced Rate Option | You want to start with an extra low rate, plus have the security of a fixed rate for a set number of years. | Reduced rate in exchange for limits on refinancing and early principal reduction for first 5 years. |
Basic ARM
- As little as 5 - 10% equity required on some programs
- Adjustment periods each 6 months or 1 year
- Maximum Life caps of 5-6 % on most programs
- Periodic Adjustment caps vary from 1-2 %
- Choice of Treasury, LIBOR and COFI indexes
- Assumable (credit qualification required)
- Conversion option available on some programs
- Owner-occupied, second home and 1-4 unit properties
- Loan amounts up to $2 million
Restrictions apply. Program terms are subject to change. Some products not available in all states.
Basic ARM with Reduced Rate Option
- As little as 5 - 10% equity required on some programs
- Good way to get a reduced rate
- Restricts refinance for the first 5 years and limits early principal reductions greater than 20% of the loan balance per year
- Can sell home at any time without penalty
- Adjustment periods each 6 months or 1 year
- Maximum Life caps of 6%
- Periodic Adjustment caps vary from 1-2%
- Assumable (credit qualification required)
- Conversion option available on some programs
- Owner-occupied home only
- Some state restrictions apply
- Loan amounts up to $2 million
Restrictions apply. Program terms are subject to change. Some products not available in all states.
Fixed Period ARMs(3/1, 5/1, 7/1, 10/1)
- As little as 5% equity required
- Interest rate and payment stay the same until end of fixed period (3, 5, 7 or 10 years)
- Annual adjustments after fixed period
- Maximum Life caps 5-6%
- Periodic adjustment caps vary
- Assumable during adjustable period (credit qualification required)
- Owner-occupied primary residence, second home and 1-4 unit properties
- Loan amounts up to $1 million
Restrictions apply. Program terms are subject to change. Some products not available in all states.
Fixed Period ARMs with Reduced Rate Option (3/1, 5/1, 7/1, 10/1)
- As little as 5 - 10% equity required on some programs
- Good choice for a reduced rate during the fixed period
- Restricts refinance for the first 5 years and early principal reductions greater than 20% of the loan balance per year
- Sell home at any time without penalty
- Interest rate and payment stay the same until end of fixed period (3, 5, 7 or 10 years)
- Annual adjustments after fixed period
- Maximum Life caps 5-6%
- Periodic Adjustment caps vary
- Assumable during adjustable period (credit qualification required)
- Owner-occupied home primary residence, second home and 1-4 unit properties
- Some state restrictions apply
- Loan amounts up to $1 million
Restrictions apply. Program terms are subject to change. Some products not available in all states.
