Adjustable Rate Mortgage
At Reliance First Capital, we understand that each of our customers has unique financial needs as well as varying short and long term goals. So, in addition to offering a range of Fixed Rate Mortgage programs, we offer a variety of Fixed-Period Adjustable Rate Mortgage (ARM) programs.
These hybrid ARM programs can deliver certain benefits including lower initial interest rates which can save you thousands of dollars during the first few years of your loan:
Conventional 5/1 and 7/1 ARMs: these programs feature an initial five-year or seven-year fixed rate, after which the rate adjusts annually for the remaining 25 or 23 years respectively. The interest rate can never increase more than 5% above the initial five-year fixed rate.
Jumbo 5/1 and 7/1 ARMs: for customers looking for larger size loans, these Jumbo programs delivery an initial five-year or seven-year fixed period rate, after which the rate adjusts annually for the remaining 25 or 23 years respectively. The interest rate can never increase more than 5% above the initial five-year fixed rate.
Call us today to learn more about these Fixed-Period ARM programs and see if one of them is right for you.
An important issue when considering an Adjustable Rate Mortgage (ARM): As with all of our loan programs, we want to make sure you fully understand all aspects. Selecting an ARM may suit your needs based on certain conditions such as if you expect to sell your home within a short time period. However, because interest rates and payments may increase, you should be prepared financially for a possible increase in rate and payments. If you're considering an ARM because of plans to sell your home within five years, you should also consider the possibility of real estate market changes and how such fluctuations in value may affect your home's sales value.