Adjustable Rate Mortgage
3/1 ARM
This type of loan has monthly payments that are based on a 30 year repayment schedule and the interest rate remains fixed for the first three years. After that time the interest rate (monthly payments) may change year after. This is called the adjustment period.The new rate is based upon changes in a financial index and is calculated by adding a specified amount to the index. The amount that is added to the index is called the margin. Let's say the index equals 4.5% at the time of adjustment and the margin equals 2.50%, the new interest rate would be 7%. However, adjustable loans usually have an adjustment cap. So if the adjustment cap is 2%, the new rate would be 6.5%.
There is also a lifetime cap which limits how much the rate can go up or down during the life of the loan. These loans can work out well for people who stay in their house for the short term.
5/1 ARM
This type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first five years.7/1 ARM
This type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first seven years.Apply Online
Quick Quote
Don't wait! Find out about your options today!
Our Happy Clients
-
"Chris was absolutely fantastic to work with. He closed on my mortgage efficiently and for exactly what he quoted me for. He answered my phone calls and emails immediately and got me a fantastic deal! I would totally recommend him to anyone looking to get a mortgage, you can't go wrong!"
-
"I had a terrific experience with Queen City - it couldn't have been better! Chris answered all of my questions, and was always available over the phone - even once in the early evening and another on Saturday. He had a great attitude also, not pushy like others I contacted. I used Queen City for a refi, and was surprised by how easy the whole process was. I would definitely recommend this lender to friends and family."
-
"I was ready to lock in with another lender but saw on Zillow that Chris could get me a much better rate. He was able to begin my application and get the 30 day lock that same day. The other broker didn't believe that the rate was real, or that the other bank would be able to complete the application process in 30 days, but Chris came through. We closed on time and the rate and fees were as promised. Chris was always available to talk and was a huge help throughout the process; I don't see why anyone would go anywhere else with a higher rate."