(503) 568-6899 jad@nwfgi.com

Adjustable Rate Mortgage

3/1 ARM

This type of loan has monthly payments that are based on a 30 year repayment schedule and the interest rate remains fixed for the first three years. After that time the interest rate (monthly payments) may change year after. This is called the “adjustment period.”

The new rate is based upon changes in a financial index and is calculated by adding a specified amount to the index. The amount that is added to the index is called the margin. Let’s say the index equals 4.5% at the time of adjustment and the margin equals 2.50%, the new interest rate would be 7%. However, adjustable loans usually have an “adjustment cap.” So if the adjustment cap is 2%, the new rate would be 6.5%.

There is also a lifetime cap which limits how much the rate can go up or down during the life of the loan. These loans can work out well for people who stay in their house for the short term.

 

5/1 ARM

This type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first five years.

 

7/1 ARM

This type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first seven years.

 

Let’s Find Your Ideal Home Loan

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I’ll learn as much as I can about your current and future financial situation, goals, and aspirations. Then, I’ll guide you through the mortgage lending process and find the right mortgage for your purchase, all tailored to you.

Contact Me

Northwest Mortgage Broker

Visit

12411 SE 2nd Circle
Vancouver, WA 98684

Call

(503) 568-6899

Email

jad@nwfgi.com

Northwest Mortgage Broker

As your Northwest Mortgage Broker, I eliminate barriers to home ownership for first-time home buyers, homeowners looking to upgrade, individual property investors, and owners interested in improving their financial position by refinancing their home.

Licensing

Individual NMLS # 1025363
Company NMLS # 101770

    

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