Mortgages Made Simple with Rick Gundzik
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| Wednesday, June 15, 2005 |
| Fixed Period ARMs, 2, 3, 5, 7 and 10 |
Fixed period ARMs are very popular. You may also hear them referred to as hybrid ARMs.
They come in 5 varieties, 2 year fixed, 3 year fixed, 5 year fixed , 7 year fixed , and 10 year fixed. Let's explain a 5 year ARM, this is the most common loan we do typically because most people say they plan to move in 3-4 years.
A 5 year arm currently has a start rate at about 5.75%. The interest rate will be 5.75% for 5 years. At the end of 5 years your loan becomes an adjustable rate mortgage and your interest rate will go to margin plus index (See previous blog entry). The 2, 3, 7 and 10 are fixed for that many years and then become adjustable loans as well.
For questions, contact us at questions@pacificresidential.com |
posted by Pac Res @ 1:58 PM   |
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