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 7 years of the loan versus changing every year. After 7 years, the rate can adjust every 6 months, depending on the market.
7/6-month ARM
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.
Other Features:
- Initial Adjustment up to +/-5.00% first rate change after first seven-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 7/6-month ARM loan is 3.368%. An example monthly mortgage payment of principal and interest is $442. 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.