Every situation calls for a unique solution, which is why an adjustable rate mortgage may be a good fit to meet our borrowers needs.
Every situation calls for a unique solution, which is why an adjustable rate mortgage may be a good fit to meet our borrowers needs.
If lowering your monthly mortgage payment for the short haul is your priority the an ARM may be a good fit
Interest rates are fixed for the initial term and then adjust annually.
Whether your looking to purchase a new or resale home, or looking to take advantage of historically low mortgage rates, we can help you achieve your borrowing goals
An Adjustable Rate Mortgage (ARM) has monthly payments that are based on a 30 year repayment schedule and the interest rate remains fixed for the first three years. After fixed period of interest, the interest rate (monthly payments) may change year after. This is called the adjustment period.
The new adjusted rate is based upon changes in a financial index and is calculated by adding a pre-agreed specified amount to the index. The amount that is added to the index is called the margin (Interest the lender charges).
For Example: Let’s say the index equals 2.50% at the time of adjustment and the margin equals 2.50%, the new interest rate would be 5%. However, adjustable loans usually have an adjustment cap. So if the adjustment cap is 1%, the new rate would be 6%.
There is also a lifetime cap which limits how much the rate can go up or down during the life of the loan. So if the lifetime cap is 5% for the example given above then thus type of ARM is referred to as an 3/1/5.
An Adjustable Rate Mortgage can work out well for people who plan staying in their homes for a short period.
This type of loan is similar to the 3/1 ARM except the interest rate remains fixed for the first five years.
This type of loan is similar to the 3/1 ARM except that the interest rate remains fixed for the first seven years.
All brokers, loans and lenders are not equal, which is why it’s important to have the right brokerage team on your side. Make an educated and informed decision with the help of our experts.
Any salaried, self-employed or professional Public and Private companies, Government sector employees including Public Sector is eligible for a home mortgage. We even have programs for Veteran and retired folks.
Minimum of 5% down payment required on purchases
Minimum credit score – usually 620
Post- bankruptcy: can qualify after 4 years
Other conditions may apply on a case-by-case basis and subject to lenders qualification criteria.
