Adjustable Rate Mortgage Future Adjustments
With an adjustable-rate mortgage (ARM), your loan will have an initial fixed-rate period. After the fixed-rate period, your interest rate will adjust up or down according to market rates at the time of reset.
|Adjustable Rate Mortgage (ARM) Info|
|Lifetime rate cap||5%|
|Yearly adjustment cap||2%|
|First year rate cap||5%|
Adjustable-Rate Mortgage: The initial payment on a 30-year $200,000 7-year Adjustable-Rate Loan at 3.375% and 70% loan-to-value (LTV) is $884.20 with 2.00 points due at closing. The Annual Percentage Rate (APR) is 3.485%. After the initial 7 years, the principal and interest payment is $862.15. The fully indexed rate of 3.125% is in effect for the remaining 23 years and can change once every year for the remaining life of the loan. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Rate is variable and subject to change after 7 years.