This is an Adjustable Rate Mortgage; however, it’s different than a typical ARM in that your Annual Percentage Rate will stay the same for the first 10 years, of the loan versus changing every year. After 10 years, the rate can adjust every 6 months, depending on the market.
Features & Benefits
Best Choice If:
- The loan amount you are looking to finance is under $510,401.
- You are looking for a home loan that does not require 20% down.
- Initial Adjustment up to +/-5.00% first rate change after first ten-year term.
- Subsequent Adjustment every 6 months thereafter, rate adjustment may not result in an increase or decrease of more than 1.00% from the prior interest rate.
- Rate cap at 5%. A rate cap is a limit on how much the rate can change at the end of each adjustment period over the life of the loan.
- Index = SOFR
- Margin = 3.0%
- Fixed rate conversion option is not available.
An example APR for a 10/6-month ARM loan is 3.638%. An example monthly mortgage payment of principal and interest is $463. The example quotes are based on a property value of $200,000 and a loan amount of $100,000. The Annual Percentage Rates (APR) stated is an estimate and is intended for informational use only. Your actual APR may vary based on your actual loan amount. Please speak with a Loan Executive for additional information about our rates and fees. Rates are subject to change without notice. Your actual rate and/or points may be different, as many factors are evaluated for a loan approval. This product is subject to change or cancellation at any time without prior notice. All loans are subject to approval.