Also known as a "fixed-period ARM" blends features of the fixed-rate mortgage and the ARM. It will have a fixed interest rate for an initial period of time and then switch to an ARM for the remaining period of the loan.
Also known as a Payment Option ARM, this is a monthly adjusting ARM that allows the borrower to choose between different monthly payment options. With so many options, it offers flexibility but typically requires careful planning that your Loan Officer can share with you.
Cash Flow ARMs / Option ARM
A minimum payment option mortgage loan. This type of loan allows a borrower to choose their monthly payment from several options. These payment options usually include the option to pay at the 30-year level, 15-year level, interest-only level, and a minimum payment level.
Also known as a non-conforming mortgage is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). It’s classified as a non-conforming mortgage which means that it’s not eligible to be purchased, or securitized by Fannie Mae or Freddie Mac.
The simple interest rate can change after the initial fixed period, and more than one simple annual rate may apply over the term of the loan. At adjustment(s) an ARM’s rate is calculated by adding the associated market index to the loan program margin. Consult your loan officer for details on ARM offerings for your specific financial situation.
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