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Adjustable Rate Mortgages

An adjustable rate mortgage (ARM) may be a good choice if you:

  • Want to maximize your buying power.
  • Want to keep your payments lower during the first few years of your loan.
  • Plan to move into a different home within the next ten years.
  • Plan to pay off your mortgage within the next 10 years.
  • If, in the coming years, you expect your income to increase significantly.

1 Year ARM-30 Yr

Best Choice If:

You want a loan with:
  • Very low initial payments.
  • Payments that adjust up and down with market movements.
    		• Advantages:

  • Treasury Indexed ARM Interest and payment adjustment occurs every 12 months.
  • Low initial rate and payment.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • Interest rate and monthly payments adjust frequently.
  • Interest rate can rise above the current fixed rates over time.

    • 3/1 ARM-30 Yr

    Best Choice If:

  • You want the interest rate to stay constant for more than one year.
  • You want to keep your payments low. To maximize the amount of loan you qualify for.
  • You want the stability of a fixed monthly payment for three years of loan.
    		• Advantages:

  • Initial interest rate that remains the same for three full years. The rate adjusts annually thereafter.
  • Allows for higher loan amount qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • It's riskier if you don't expect your income to increase over the initial three-year period to cover the change in monthly payment.
  • Interest rate can rise above the current fixed rates over time.

    • 5/1 ARM - 30 Yr

    Best Choice If:

  • You want the interest rate to stay constant for more than one year.
  • You want to keep your payments low. To maximize the amount of loan you qualify for.
  • You want to stay in your home for less than five years.
    		• Advantages:

  • Initial interest rate that remains the same for five full years.
  • The rate adjusts annually thereafter.
  • Allows for higher loan amount qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • It's riskier if you don't expect your income to increase over the initial three-year period to cover the change in monthly payment.
  • Interest rate can rise above the current fixed rates over time.

    • 5/1 ARM Conforming 100%

    Best Choice If:

  • You want the interest rate to stay constant for more than one year.
  • You want to keep your payments low. To maximize the amount of loan you qualify for.
  • You want to stay in your home for less than five years.
    		• Advantages:

  • Initial interest rate that remains the same for five full years.
  • The rate adjusts annually thereafter.
  • Allows for higher loan amount qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • It's riskier if you don't expect your income to increase over the initial three-year period to cover the change in monthly payment.
  • Interest rate can rise above the current fixed rates over time.

    • 7/1 ARM-30 Yr

    Best Choice If:

  • You want a longer initial fixed period than the 5/1 ARM.
  • You want to keep your payments low. To maximize the amount of loan you qualify for.
  • You want to stay in the home for less than seven years.
  • You want the stability of a fixed monthly payment for first seven years of loan.
    		• Advantages:

  • Initial interest rate that remains the same for seven full years. The rate adjusts annually thereafter.
  • Allows for higher loan amount. qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • The interest rate can increase dramatically after the first seven years.

    • 1 Year ARM - Jumbo-30 Yr

    Best Choice If:

  • You want:
  • Very low initial payments.
  • Payments that adjust up and down with market movements.
    		• Advantages:

  • Lowest initial rate and payments available.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • Interest rate and monthly payments adjust frequently.
  • Interest rate can rise above the current fixed rates over time.

    • 3/1 ARM Jumbo-30 Yr

    Best Choice If:

  • You want the interest rate to stay constant for more than one year.
  • You want to keep your payments low.
  • You want to maximize the amount of loan you qualify for.
  • You want the stability of a fixed monthly payment for three years of loan.
    		• Advantages:

  • Initial interest rate that remains the same for three full years. The rate adjusts annually thereafter.
  • Allows for higher loan amount. qualification and enhanced buying power.
    		• Disadvantages:

  • Interest rate can rise above the current fixed rates over time.

    • 5/1 ARM Jumbo-30 Yr

    Best Choice If:

  • You want a longer initial fixed period than the 3/1 ARM.
  • You want to keep your payments low.
  • You want to maximize the amount of loan you qualify for.
  • You want to stay in the home for less than five years.
  • You want the stability of a fixed monthly payment for first five years of loan.
    		• Advantages:

  • Initial interest rate that remains the same for five full years.
  • The rate adjusts annually thereafter.
  • Allows for higher loan amount. qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • It's riskier if you don't expect your income to increase over the initial five-year period to cover the change in monthly payment.
  • Interest rate can rise above the current fixed rate over time.

    • 5/1 ARM Jumbo 100%

    Best Choice If:

  • You want a longer initial fixed period than the 3/1 ARM.
  • You want to keep your payments low.
  • You want to maximize the amount of loan you qualify for.
  • You want to stay in the home for less than five years.
  • You want the stability of a fixed monthly payment for first five years of loan.
    		• Advantages:

  • Initial interest rate that remains the same for five full years.
  • The rate adjusts annually thereafter.
  • Allows for higher loan amount. qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • It's riskier if you don't expect your income to increase over the initial five-year period to cover the change in monthly payment.
  • Interest rate can rise above the current fixed rate over time.

    • 7/1 ARM Jumbo-30 Yr

    Best Choice If:

  • You want a longer initial fixed period than the 5/1 ARM.
  • You want to keep your payments low.
  • You want to maximize the amount of loan you qualify for.
  • You want to stay in the home for less than seven years.
  • You want the stability of a fixed monthly payment for first seven years of loan.`
    		• Advantages:

  • Initial interest rate that remains the same for seven full years. The rate adjusts annually thereafter.
  • Allows for higher loan amount. qualification and enhanced buying power.
  • Conversion to a fixed rate is available.
    		• Disadvantages:

  • The interest rate can increase dramatically after the first seven years.

    • Mortgage Rates

    The Loan Consultant feature determines the products and rates that match your needs.

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