MORTGAGE PROGRAMS - CLICK HERE
Need extra borrowing power?
Plan to move or refinance in a few years?
Assist borrowers in obtaining a larger loan
This is possible because qualifications are at the lower interest rate.
Save money in the early years
Lower initial interest rate than a traditional fixed-rate loan
Have a variety of adjustment periods
Best for people who:
Need extra borrowing power
Want to save money in the first few years
Plan to move or refinance in a few years
Are purchasing or refinancing at a time when
interest rates are comparatively high
Adjustable Rate Mortgage (also called ARMs)
feature an interest rate that periodically adjusts with changing market rates.
An Adjustable Rate Mortgage is available in
government, conforming and
amounts. The ARM allows you to take advantage of lower interest rates in a
falling rate environment, and you'll benefit from lower monthly payments. The
initial interest rate on an ARM is usually lower than the lifetime interest rate
on a fixed-rate mortgage (FRM). ARM interest rates and the degree to which they
fluctuate at the end of every adjustment period.
1/1, 3/1, 5/1, 7,1, and 10/1 ARM's
Treasury - 1/1, 3/1,
5/1, 7/1 and 10/1 ARM's
In a speech to a
credit union group, Fed Chairman Alan
Greenspan questioned whether
fixed-rate mortgages were the most cost-effective means of financing a home
purchase. He said "American homeowners clearly like the certainty of fixed
mortgage payments" but pay several thousands of dollars a year for the benefits.
homeowners "might have saved tens of thousands of dollars had they held
adjustable-rate mortgages rather than fixed-rate mortgages during the past
Greenspan noted that if homeowners are "willing to manage their own
interest-rate risks, the traditional fixed-rate mortgage may be an expensive
method of financing a home." Feb. 24, 2004