ARMsAdjustable-Rate Mortgages:

Whether you’re purchasing or refinancing a home, there are several factors to consider when evaluating your loan options.  Payment amount, rate and the number of years you plan on living in the home are just a few. Many homeowners find that an adjustable-rate mortgage (ARM) provides the financial flexibility they desire along with a lower initial rate and payment.

An ARM features an initial fixed interest rate and payment period.  After the fixed-rate period expires, the interest rate becomes adjustable for the remainder of the loan term.  Fixed-period ARMs are named by the length of time the interest rate remains fixed. 

For example, with a 10/1 ARM, the “10” signifies the ten-year initial period, during which the interest rate is fixed.  The “1” indicates the interest rate is subject to adjustment once per year after the fixed-rate period and for the remainder of the loan term. 

If you are like the average homeowner, who keeps a mortgage for only 7 years, a 10/1 ARM may be right for you. 




Features of a TruWest ARM:

  • Lower interest rates in the beginning of the loan, typically with a lower monthly payment
  • Interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 3, 5, 7 or 10 years, then adjust annually
  • Jumbo loans are available ($417,000+)
  • Available for purchases and refinances 
  • Typically have a lower interest rate than a fixed-rate mortgage
  • An interest rate cap limits the maximum amount your P&I payment may increase at each rate adjustment and over the life of the loan
ARM Table

A 10/1 ARM is perfect for you if:  

  • You’re looking for a lower monthly payment
  • You plan to move or refinance within 10 years
  • You like the feeling of a secure rate and payments 

Considerations:

  • Monthly P&I payments may increase when the interest rate adjusts
  • Monthly P&I payments may change every year after the initial fixed period is over

Rates

Contact 1-855-841-9203 to work directly with our Home Loan Experts to find out if a TruWest ARM is the best option for your mortgage needs.

Apply Now

*10/1 ARM – rate adjusts annually after 10-year initial period. Savings calculation based on $200,000 loan amount. Max LTV 80%. 5% interest rate cap. Min 740 FICO for purchases or rate-and-term refinances. On approved credit. Jumbo loans ($417,000+) available.
http://www.bankrate.com/calculators/mortgages/compare-arm-or-fixed-rate-calculator.aspx