Why an ARM?
If you are looking to move or refinance within the next few years, an Adjustable Rate Mortgage (ARM) may be a good choice for you. This mortgage will allow you to take advantage of today’s extra low rates while you move forward with life.
What is a 5/1 ARM?
A 5/1 ARM is an adjustable rate mortgage that has a fixed interest rate for the first five years of the mortgage. Then after the first five years, the rate is subject to change annually. The rate will be determined by the index; in this case we use the 1 year LIBOR, plus the margin. Our margin is defined for this loan at 2.00%
What is a 5/5 ARM?
This is also an adjustable rate mortgage. In this loan the rate is constant for the first five years. Then the rate is subject to an adjustment every 5 years. The index for this loan is also the 1 year LIBOR and the margin is 3.00%
Do you have more questions? – Read our Frequently Asked Questions here