Adjustable Rate Mortgages
Schedule a free
consultation with our home loan experts.
These loans generally begin with an
interest rate that is 2-3 percent below a comparable fixed rate
mortgage, and could allow you to buy a more expensive home.
However, the interest rate changes at specified intervals (for example,
every year) depending on changing market conditions; if interest rates
go up, your monthly mortgage payment will go up, too. However, if rates
go down, your mortgage payment will drop reflectively.
There are also mortgages that combine aspects of fixed and adjustable
rate mortgages - starting at a low fixed-rate for seven to ten years,
for example, then adjusting to market conditions. Ask our mortgage
professionals about these and other special kinds of mortgages that can fit
your specific financial situation.
Standard ARM Programs
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consultation with our home loan experts.
A few options are available to fit your
individual needs and your risk tolerance with the various market
instruments.
ARMs with different indexes are available for both purchases and
refinances. Choosing an ARM with an index that reacts quickly lets you
take full advantage of falling interest rates. An index that lags behind
the market lets you take advantage of lower rates after market rates
have started to adjust upward.
The interest rate and monthly payment can change based on adjustments to
the index rate.
6-Month Certificate of Deposit (CD) ARM
Has a maximum interest rate adjustment of 1% every six months. The
6-month Certificate of Deposit (CD) index is generally considered to
react quickly to changes in the market.
1-Year Treasury Spot ARM
Has a maximum interest rate adjustment of 2% every 12 months. The 1-Year
Treasury Spot index generally reacts more slowly than the CD index, but
more quickly than the Treasury Average index.
6-Month Treasury Average ARM
Has a maximum interest rate adjustment of 1% every six months. The
Treasury Average index generally reacts more slowly in fluctuating
markets so adjustments in the ARM interest rate will lag behind some
other market indicators.
12-Month Treasury Average ARM
Has a maximum interest rate adjustment of 2% every 12 months. The
treasury Average index generally reacts more slowly in fluctuating
markets so adjustments in the ARM interest rate will lag behind some
other market indicators.
BlueMortgage.com provides a wealth of
information about the various phases of a real estate and loan
transaction. We also provide helpful advice to assist you through the
process. Take a look at our Mortgage Information
Gateway menu, and click on any option that interests you.
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