California Adjustable Rate Mortgage (ARM)
Pacific Home Loans offers the following conventional, government, and alternative document California adjustable rate mortgage programs:
Conventional Fixed Rate
Government Fixed Rate
Self-employed Bank Statement Loan
Some of the benefits of an Adjustable Rate Mortgage (ARM)
Initial Fixed rate
Choose the initial rate that best fits with your investment strategy. The PHL ARM combines the features of fixed rate and adjustable rate loans. It starts off with a stable interest rate for several years, after which it converts to an ARM, with the rate being adjusted every year for the remaining life of the loan.
Available Initial Fixed Rate Periods:
The initial fixed rate for an PHL ARM can be as much as 2% lower than the rate for a 30-year fixed!
Adjustable rate mortgages are often referred to as 3/1, 5/1, and so on. The first number is the length of the fixed term – usually 1, 3, 5, 7, or 10 years. The second is the adjustment interval that applies when the fixed term is over. For example, with a 7/1 ARM, you pay a fixed rate of interest for seven years. At the end of that 7-year period, the interest rate will adjust annually up or down according to market conditions.
Reasons to consider an ARM
You should consider an ARM if any of the following reasons apply to you.
- You want the lowest interest rate possible and are willing to tolerate some risk to achieve it.
- You are planning to be in your home for less than ten years.
- You would like the peace of mind that comes with a consistent monthly payment, for three or more years, with an interest rate that’s only slightly higher than an annually adjusted ARM.
- You are planning to sell your home or refinance shortly after the fixed term is over.