An Adjustable Rate Mortgage may be a good choice if you:
Want to maximize your buying power
Want to keep your payments lower during the first few years of your loan
Plan to stay move into a different home within the next ten years
Plan to pay-off your mortgage within the next 10 years
If, in the coming years, you expect your income to increase significantly
5/5 ARM
Best Choice If:You want a loan with:
• Very low initial payments, with stability for the first 5 years and then adjustments in 5 year increments
• The benefits of both a Fixed and ARM product.
Advantages:• Interest rate stays fixed for first 5 years. Adjusts each 5 years thereafter, subject to caps
• 5 year adjustments work well for planning and budgeting.
• Allows for higher loan amount qualification and enhanced buying power
Disadvantages:• Interest rate and monthly payments will adjust in the future.
• Over time, interest rate could rise above the current fixed rates.
5/5 ARM TIC
Best Choice If:You want:
A longer initial fixed period than the 3/6 ARM.
To keep your payments low.
To maximize the amount of loan you qualify for.
The stability of a fixed monthly payment for first five years of loan.
Advantages:
Initial fixed interest rate for 5 full years. The rate adjusts every 5 years thereafter.
Allows for higher loan amount qualification and enhanced buying power.
Disadvantages:
It's riskier if you don't expect your income to increase over the initial five-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
10/6 ARM
Best Choice If:You want:
A longer initial fixed period than the 5/6 ARM.
To keep your payments low.
To maximize the amount of loan you qualify for.
To stay in the home for less than 7 years.
The stability of a fixed monthly payment for first seven years of loan.
Advantages:
Initial fixed interest rate for 10 full years. The rate adjusts every 6 months thereafter.
Allows for higher loan amount qualification and enhanced buying power.
Conversion to a fixed rate is available.
Disadvantages:
The interest rate can increase dramatically after the first 10 years.
If it's likely you'll be moving out before 7 years has past, think about a 7 year balloon mortgage.
10/6 ARM TIC
Best Choice If:You want:
You need to qualify for the largest loan possible.
You wish to purchase a desirable property that may otherwise be unattainable; percentage ownership in high cost areas.
Single-family residences and large condominium projects are out of reach or undesirable
Advantages:
Separate mortgage liability within a shared ownership structure.
Fully-amortized repayments for the life of the loan with no pre-payment penalties
Desirable properties within larger cities that offers a sought after lifestyle and amenities
Disadvantages:
Adjustable Rate Mortgages are subject to rate adjustments throughout the life of the loan (ask your Mortgage Loan Consultant for specifics and options)
Shared ownership requires shared expenses for the projects property taxes and insurance managed by an HOA
5/6 ARM
Best Choice If:You want:
A longer initial fixed period than the 3/6 ARM.
To keep your payments low.
To maximize the amount of loan you qualify for.
The stability of a fixed monthly payment for first five years of loan.
Advantages:
Initial fixed interest rate for 5 full years. The rate adjusts every 6 months thereafter.
Allows for higher loan amount qualification and enhanced buying power.
Disadvantages:
It's riskier if you don't expect your income to increase over the initial five-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
7/6 ARM
Best Choice If:You want:
A longer initial fixed period than the 5/6 ARM.
To keep your payments low.
To maximize the amount of loan you qualify for.
The stability of a fixed monthly payment for first five years of loan.
Advantages:
Initial fixed interest rate for 7 full years. The rate adjusts every 6 months thereafter.
Allows for higher loan amount qualification and enhanced buying power.
Disadvantages:
It's riskier if you don't expect your income to increase over the initial seven-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
5/6 ARM TIC
Best Choice If:You want:
You need to qualify for the largest loan possible.
You wish to purchase a desirable property that may otherwise be unattainable; percentage ownership in high cost areas.
Single-family residences and large condominium projects are out of reach or undesirable
Advantages:
Separate mortgage liability within a shared ownership structure.
Fully-amortized repayments for the life of the loan with no pre-payment penalties
Desirable properties within larger cities that offers a sought after lifestyle and amenities
Disadvantages:
Adjustable Rate Mortgages are subject to rate adjustments throughout the life of the loan (ask your Mortgage Loan Consultant for specifics and options)
Shared ownership requires shared expenses for the projects property taxes and insurance managed by an HOA
7/6 ARM TIC
Best Choice If:You want:
You need to qualify for the largest loan possible.
You wish to purchase a desirable property that may otherwise be unattainable; percentage ownership in high cost areas.
Single-family residences and large condominium projects are out of reach or undesirable
Advantages:
Separate mortgage liability within a shared ownership structure.
Fully-amortized repayments for the life of the loan with no pre-payment penalties
Desirable properties within larger cities that offers a sought after lifestyle and amenities
Disadvantages:
Adjustable Rate Mortgages are subject to rate adjustments throughout the life of the loan (ask your Mortgage Loan Consultant for specifics and options)
Shared ownership requires shared expenses for the projects property taxes and insurance managed by an HOA
TMS 7/6 ARM
Best Choice If:You want:
A longer initial fixed period than the 5/6 ARM.
To keep your payments low.
To maximize the amount of loan you qualify for.
The stability of a fixed monthly payment for first five years of loan.
Advantages:
Initial fixed interest rate for 7 full years. The rate adjusts every 6 months thereafter.
Allows for higher loan amount qualification and enhanced buying power.
Disadvantages:
It's riskier if you don't expect your income to increase over the initial seven-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
Mortgage Rates
The Loan Consultant feature determines the products and rates that match your needs.
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