1/1 Adjustable Rate Mortgage (ARM)

Why would I want a 1/1 ARM home mortgage loan

A 1/1 ARM will work well for you if you want low monthly payments for the first year of your mortgage, and are willing to opt for mortgage rates that will adjust annually with the market for the duration of your term. This may be an option for you if you plan to sell your home after a short period.

What can I use a 1/1 ARM home mortgage loan for, and what are my options

You can use a 1/1 ARM to buy almost any form of real estate. Other Adjustable Rate Mortgage terms are 2/1, 3/1, 5/1, 7/1, and 10/1.

Why should I get a 1/1 ARM home mortgage loan?

The initial interest rate you will get for any Adjustable Rate Mortgage will be lower than a Fixed Rate Mortgage. However, after your first year of fixed rates, your payments can change quite significantly. It is important to be able to pay whatever your monthly pays will be to avoid foreclosure. Of course you can always refinance for a different ARM or a Fixed Rate Mortgage after the first year of your 1/1 ARM.

How can I get a 1/1 ARM home mortgage loan

We can help you apply for a 1/1 ARM home mortgage loan. Please click here for more information.

How can my FICO/Credit Score affect my mortgage rate

Your Credit Score and FICO are extremely important in determining your mortgage rate. To get started, get your free online credit report and score and see where you are on the credit scale. If you scored between 720 and 850 you are A-Paper, which means you have good credit. Unfortunately, if you scored below 660 you will have a difficult time finding a lender. The official cutoff for Sub-Prime or Non-Prime lending is 620.

Q: What is a comparable alternative to a 1/1 ARM home mortgage loan?

A: You may want to consider ARMs with other terms, or you may be interested in a Balloon ARM. An Interest Only Loan or a One Year LIBOR may appeal to you if you like that the 1/1 ARM option with low monthly payments.

Q: What is an advantage of the 1/1 ARM home mortgage loan?

A: After the first year of low payments, you will always pay an interest rate that reflects the market. This can be very beneficial to you if interest rates fall while you are paying off your mortgage.

Q: What kind of down payment do most lenders expect for a 1/1 ARM home mortgage loan?

A: Most lenders expect a down payment of 5-10% of the purchase value of your home for this type of loan.
A: Most lenders expect a down payment of 5-10% of the purchase value of your home for this type of loan.

This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.

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