A Bankers Fidelity Company

    
A Bankers Fidelity Company

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Tuesday, February 07, 2012
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Adjustable Rate Mortgages

Adjustable Rate Mortgages offer fixed rate features and may be the perfect solution if you are not planning to keep your mortgage for the long-term or just want to maximize your cash flow with an interest rate that can be much lower than a 15 or 30 year fixed rate.

The loan is fixed for a specific period of time (1, 3, 5, 7, or 10 years) and then it can periodically adjust based on a certain formula that is established in your loan documents  (called "index and margin").  Depending on the specific loan type, the interest rate might adjust monthly, quarterly, semi-annually, or annually after the initial fixed rate period.  "Caps" on these adjustments control how high or low your interest rate could adjust to after the initial fixed rate period. 

Loan amounts are available as follows:

Loan Type

Min./Max Loan Amt

Also Known as:

Conforming Loans (1)

$100,000 to $417,000

Hybrid Agency Conforming Loans

Temporary High Limit Loans (2)

$417,001 to $729,750

Hybrid Agency Jumbo Loans

Jumbo Loans (3)

$729,750 to $2,000,000

Hybrid Non-Agency Loans

Super Jumbo Loans (4)

$2,000,100 to $4,000,000

Hybrid Super Non-Agency Loans

Estate Loans (5)

$4,000,100 plus

Hybrid Estate Financing

(1) The lowest interest rates of all fixed rate options and the most widely available
(2) Slightly higher rates than conforming loans - Temporarily available by Federal Mandate until further notice
(3) Slightly higher rates than Temporary High Limit - Most jumbo loans are available as hybrid loans
(4) The next highest interest rates - Most Super Jumbo are available as hybrid loans
(5) Generally the highest interest rates - Loans available are almost always hybrid loans

For a sample of current interest rates, click here

To apply for a loan, click here

Adjustable Rate Mortgages offer fixed rate features and may be the perfect solution if you are not planning to keep your mortgage for the long-term or just want to maximize your cash flow with an interest rate that can be much lower than a 15 or 30 year fixed rate.

The loan is fixed for a specific period of time (1, 3, 5, 7, or 10 years) and then it can periodically adjust based on a certain formula that is established in your loan documents  (called "index and margin").  Depending on the specific loan type, the interest rate might adjust monthly, quarterly, semi-annually, or annually after the initial fixed rate period.  "Caps" on these adjustments control how high or low your interest rate could adjust to after the initial fixed rate period. 

Loan amounts are available as follows:

Loan Type

Min./Max Loan Amt

Also Known as:

Conforming Loans (1)

$100,000 to $417,000

Hybrid Agency Conforming Loans

Temporary High Limit Loans (2)

$417,001 to $729,750

Hybrid Agency Jumbo Loans

Jumbo Loans (3)

$729,750 to $2,000,000

Hybrid Non-Agency Loans

Super Jumbo Loans (4)

$2,000,100 to $4,000,000

Hybrid Super Non-Agency Loans

Estate Loans (5)

$4,000,100 plus

Hybrid Estate Financing

(1) The lowest interest rates of all fixed rate options and the most widely available
(2) Slightly higher rates than conforming loans - Temporarily available by Federal Mandate until further notice
(3) Slightly higher rates than Temporary High Limit - Most jumbo loans are available as hybrid loans
(4) The next highest interest rates - Most Super Jumbo are available as hybrid loans
(5) Generally the highest interest rates - Loans available are almost always hybrid loans

For a sample of current interest rates, click here

To apply for a loan, click here

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