What is a Adjustable Rate Mortgage?
- If you’re planning on buying a home and living there for less than 7
years, an Adjustable Rate Mortgage (ARM) Loan may be an excellent option for you! Enjoy some of the lowest rates we offer, with the comfort of knowing the rate is fixed for the first 5 or 7 years of your ARM.
Key Aspects of a Adjustable Rate Mortgage
- Low interest rates available for shorter than traditional fixed periods of time, typically 5 or 7 years.
- After the initial fixed interest rate period, the interest rate can adjust up or down annually over the life of the loan.
- Principal and interest payments are amortized over 30 years.
- Maximum cap at 5% above your initial interest rate to protect in a period of rising interest rates.
- As an example; if you’re initial fixed interest rate is 2%, your variable interest rate will never exceed 7%.
Adjustable Rate Mortgage Loan
- Full and complete online loan application
- 2 years recent tax returns w/ W2’s
- Business returns if self employed w/ 1099’s
- 2 recent pay stubs
- Home Insurance Dec Page
- Mortgage Statement
- Copy of Executed Purchase Agreement, only if Purchasing
- Copy of Earnest Money Deposit, only if Purchasing
- 2 months recent bank statements, only if Purchasing
- Driver’s License
- Social Security Card