Adjustable-Rate Mortgage Loan Programs
Adjustable-Rate Mortgage (ARM) loan products offer a cost-effective solution for prospective homebuyers with short-term mortgage goals. The first number in your ARM program refers to the fixed rate period at the start of the mortgage. The second number in the ARM program references the intervals your rate will be reset following the introductory fixed rate period.
Program features:
*7/6-month ARM program features fixed rate for the first 7 years with the rate subject to change every 6 months following the expiration of the fixed rate program. Following the expiration of the fixed rate period, rate is subject to change every 6 months.
Program Features:
*3/1, 5/1, 7/1 and 10/1 ARM programs feature fixed rate for the first 3, 5, 7 or 10 years with the rate subject to change annually following the expiration of the fixed rate program. 5/5 ARM program features fixed rate for the first 5 years. Rate is subject to change after the initial 5 years to a new fixed rate. Following the expiration of this fixed rate period, rate is subject to change every 5 years. **Private Mortgage Insurance (PMI) required when loan-to-value exceeds 80%.
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This is the process of determining whether a borrower has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.
For a pre-qualification, the loan officer asks you a few questions and provides you with a pre-qualification letter. A pre-approval includes all the steps of a full approval, except for the appraisal and title search.
A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.
Both income and assets are disclosed and verified, and income is used in determining the applicant's ability to repay the mortgage. Formal verification requires the borrower's employer to verify employment and the borrower's bank to verify deposits. Alternative documentation, designed to save time, accepts copies of the borrower's original bank statements, W-2s and paycheck stubs.
It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.
Reach out to our team of local mortgage loan officers and take the initial step towards homeownership. Our team is ready to assist you throughout the process, offering you the necessary information and guidance to help you make informed decisions for your unique needs. Don't delay any longer - contact our team today.
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*Not a commitment to lend. Calculation estimates are hypothetical and intended for educational purposes only. Additional fees and costs, such as taxes and insurance, may not be included and may be different based on the loan program. Actual payment obligation may be higher. Loan programs, interest rates, loan terms and conditions are subject to change and can vary based on market conditions and individual circumstances. If refinancing an existing loan, the total finance charges may be higher over the life of the loan. For more information, please consult with one of our licensed loan officers.