Adjustable Rate Mortgage
Adjustable Rate Mortgages (ARMs) - The term is fixed, but the rate adjusts at designated intervals to a set index plus a margin. Payments are due monthly, and change when the rate is adjusted. These products usually have one or more of the following features: (a) Annual cap (b) Monthly cap (c) Lifetime cap (d) Payment cap (e) Margin (f) Index (g) Option to convert to a fixed rate at some point in time.

Benefits: When financial goals are clear (Such as timeframe of property ownership, and cash flow needs), and calculations are made using the fixed elements of the adjustable rate mortgage, the possibility of huge monetary savings exists without risk or rate shock (when the rate increases beyond affordability.) The lower payment will allow you to afford more house (you can purchase a larger house.) Most of the interest is tax deductible, and can be structured to be 100% deductible in some cases. The fixed rate ARMs are available up to 40 year amortizations. Interest only mortgages are available on most of the adjustable rate mortgage products.

Adjustable Rate Mortgage (ARM) Products: 12 month MTA Monthly ARM with payment cap, Six month ARM., 1 year ARM with 2% annual cap and 6% lifetime cap and option to convert to a fixed rate. 1 year ARM with 2% annual cap and 4% lifetime cap, 2 year ARM, 3 year ARM, 3 year ARM. that converts to a one year ARM, 3 year ARM. that converts to a 6 mos. ARM, 3 year ARM that converts to a 5 year ARM, 5 year ARM, 5 year ARM that converts to a 3 year ARM, 5 year ARM that converts to a one  year ARM. 5 and 7 year balloon, 6 month, 3/1, 3/6, 5/1, 5/6, 7/1, 10/1, 10/6 fully amortizing or interest only mortgages. The list goes on and on.

Call us so that we can help you make the best choice for your situation.