Our Adjustable Rate Mortgage is different than a typical ARM in that your interest rate will stay the same for the first 5 years of the loan versus changing every year. After the initial 5 years, the rate will only adjust every 5 years for the life of the loan, depending on the market. Compared to a Fixed Rate home loan, the 5/5 ARM offers a lower interest rate initially, which can increase your buying power. If you are looking for the lowest rate ARM possible, you may want to consider a 5/1 ARM, which typically has a lower interest rate than the 5/5 ARM.
- Rate caps = 2% per adjustment and 5% over the lifetime of the loan. 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 = 1 Year LIBOR
Margin = 2.000%
Conversion to a Fixed Rate home loan is not currently available.