Adjustable-rate mortgages (ARM) have fixed monthly payments for up to 10 years, after which the payment changes semi-annually based upon current interest rates. Your interest rate and monthly payment may increase or decrease depending on the interest rates at that time.
ARM loans are named depending on the length of time their interest rate and payment is to remain fixed, along with how often that rate may adjust after the fixed period. For example, when you see a “5/6” ARM loan, the five (5) represents the period in years with which the interest rate and payment is to remain fixed. The six (6) represents the semi-annual adjustment after the 5-year term.
Interest-only loans may help by providing options that may allow you to you minimize your monthly payment.
- Jumbo ARMs – 30 & 40-year terms
- Fixed-rate options of 3, 5, 7, and 10 years
- Interest-only options available with 30 and 40-year terms
- Competitive rates for owner-occupied, second home and investment properties
- Up to 80% loan-to-value
- Loans to $5 Million
- For lower-balanced loans, we offer 5/1 ARMs for FHA and VA