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
10/6 ARM SOFR
Best Choice If:
You want a longer initial fixed period than the 7/6 ARM.
To maximize the amount of loan you qualify for.
You plan to stay in the home for less than 10 years.
The stability of a fixed monthly payment for first 10 years of loan.
Advantages:
Initial fixed interest rate for 10 full years; rate adjusts every 6 months thereafter.
Allows for higher loan amount qualification and enhanced buying power.
Disadvantages:
The interest rate and payment can increase after the first 10 years.
Sample Payment:The Monthly Mortgage Payment (P&I) is based on a purchase price of $300,000 for an owner-occupied conforming property with a 20% down payment and a 30-year term.
The calculations assume member-paid closing costs, including points, which typically range from 2-3% of the loan amount.
7/6 ARM SOFR
Best Choice If:
You want a longer initial fixed period than the 5/6 ARM.
You plan to stay in your home less than 7 years.
You want the stability of a fixed monthly payment for the first 7 years of a loan.
Advantages:
Initial fixed interest rate for 7 full years; rate adjusts every 6 months thereafter.
Initial lower rate and payment than a fixed loan.
Potentially allows for higher loan amount qualification and enhanced buying power.
Disadvantages:
The interest rate and payment can increase at the end of the first 7 years.
Sample Payment:The Monthly Mortgage Payment (P&I) is based on a purchase price of $300,000 for an owner-occupied conforming property with a 20% down payment and a 30-year term.
The calculations assume member-paid closing costs, including points, which typically range from 2-3% of the loan amount.
5/6 ARM SOFR
Best Choice If:
You plan to stay in your home a short period of time.
You want to keep your payments low.
You want to qualify for higher loan amounts with lower interest rates.
You want the stability of a fixed monthly payment for first 5 years of loan.
Advantages:
Initial fixed interest rate for 5 full years; 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 5-year period to cover the change in monthly payment.
Interest rate can rise above the current fixed rates over time.
Sample Payment:The Monthly Mortgage Payment (P&I) is based on a purchase price of $300,000 for an owner-occupied conforming property with a 20% down payment and a 30-year term.
The calculations assume member-paid closing costs, including points, which typically range from 2-3% of the loan amount.
Mortgage Rates
The Loan Consultant feature determines the products and rates that match your needs.
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