3/1 ARM- This type of loan is fixed for 3 years and then in the 4th year converts to an adjustable rate mortgage for the rest of the term of the loan. This adjustable rate will be directly affected by 1-year treasury index which is added to a margin, usually between 2.25%-3.0% to get to your new monthly payment.

Like the 3/1 ARM, the 5/1 ARM and 7/1 ARM operate as fixed loans for the first agreed upon period of loan and then adjust to an ARM after the initial period.

  • Facebook
  • Google+
  • LinkedIn
  • YouTube
  • Yelp