3 Year ARM Programs -
3 year adjustable rate mortgages
Research current 3/1 ARM rates using the rate survey below:
If
you are planning on being in your home for three to
five years, a 3/1 ARM might be the right program for
you. With a 3 year ARM, your rate is locked in at
an introductory rate for the first three years of
the mortgage and then will begin adjusting upward
or downward after the introductory period expires.
The great thing about short term ARM programs is that
they typically carry a lower rate than their fixed
rate counterparts. This factor may lead to big savings
for the consumer. However, these benefits must be
weighed with the added risk that these loans bring
to the table. 3 year adjustable rate mortgage programs
are not recommended for clients who do not actively
monitor their finances. It is very important that
homeowners mark their calendar near the end of the
introductory period. At that time, if one's payment
is going to adjust upward significantly and they are
planning on staying in the home, they may want to
refinance to another ARM or lock in on a fixed rate
home loan.
Request 3/1 ARM rates and program information
(2 options):
1. Call the lenders, banks, and brokers listed in
the survey for more information.
2. Use the survey to connect with the companies' web
sites.
3/1 ARM Program Highlights
- Low introductory rate for first three years.
- Loan sizes will vary by institution.
- Many have 2/2/6 caps which means the initial rate
can not go up or down more than 2% at the first
adjustment period, 2% at any adjustment thereafter,
and 6% total at any point during the 30 year term.
Ask the various companies for their caps and margins.
- Indexes will vary but may include LIBOR or Treasury.
Be sure to ask to details.
Thank you for using ForTheBestRate.com to research
your next 3 year ARM
Additional Adjustable Rate Mortgage Programs to
Consider:
