Insight on adjustable rate mortgages and the different loans programs available to consumers.

Adjustable rate mortgages have a fixed rate period in the beginning of the loan anywhere from two to ten years depending on the loan program, this generally offers a low rate for that part of the term. 

Check out some of the loan programs here to get an idea of how adjustable rate mortgages vary with the fixed rate portion.

2/28 is fixed for the first two years and can adjust for the following twenty-eight.

3/27 is fixed for the first three years and can adjust for the following twenty-seven years.

These two loans are primarily for non-conforming borrowers with less than perfect credit.

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LIBOR  the "London Interbank Offering Rate" the English version of the "Prime Rate"!!

3/1 LIBOR being fixed for the first three years and can adjust for the following twenty-seven years. What differentiates this loan from the 3/27 is that the 3/1 LIBOR is a conforming borrowers loan and is primarily for a-plus borrowers where as the 3/27 is a non-conforming borrowers loan program.

5/1 LIBOR Loan carries a fixed rate for the first five years and can adjust once yearly from the time of origination for the following twenty-five years.

5/6 LIBOR Loan is fixed rate for the first five years and can adjust semi annual during the adjustable rate portion of the loan. The 5/6 may offer a lower rate for the initial first five years over the 5/1 LIBOR, check the pricing on both and compare.

7/1 LIBOR Loan is fixed for the first seven years and can adjust once annually for the following twenty-three years.

10/1 LIBOR Loan is fixed for the first ten years and can adjust once annually for the following twenty years.

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CODI COFI, COSI and MTA are adjustable rate mortgages but do NOT move up or down with the Prime Rate. In fact they are some of the most stable adjustable rate mortgages available. Why? Because these mortgages rates are driven up or down with a specific index rather than the prime rate. The indexes that generate these mortgages are based on the interest gained or declined that revolve around deposit accounts such as checking, savings and cd accounts known as deposit accounts.

With Pay-Option ARM's you have the option to select one of four payments shown on your mortgage statement, the program is as follows; "Deferred amortization", "Interest only", "30-year Payment" and the "15- year payment" all offered from day one.

Not everyone qualifies for an Option ARM mortgage and restrictions may apply based upon how much you're borrowing against the value of the home.

Whether purchasing or refinancing a primary or investment property you should consult your home loan specialist to see what works best for your situation.

Adjustable rate mortgages can be the key to getting you approved for a new purchase loan or refinance.

By receiving a lower rate during the fixed period the overall debt to income ratio may work as a key factor in getting your loan approved. 

You shouldn't be alarmed by getting involved with and adjustable rate mortgage because the trend has shown that they have out performed fixed rate mortgage for the past twenty-five years, and because the rate doesn't always go up as it may actually go down. 

Call MyLoan1st.com today and ask us about any loan program that you may be interested in and compare Toll Free 888-744-2944