Why would I want a 2/1 ARM home mortgage loan
The 2/1 ARM is a fairly new option. You will be interested in a 2/1 ARM if you want a low, fixed rate mortgage for the first two yeas of your term, then an interest rate that fluctuates annually with the market for the rest of your loan term. This is a good option if you are not planning to stay in your house for long.
What can I use a 2/1 ARM home mortgage loan for and what are my options
You can use a 2/1 ARM to buy a house that you may not be able to afford for another two years. Your first two years of a 2/1 ARM are fixed at a low rate, so if you are still putting the last kid through college, making payments on a car, trying to get rid of other debts, or are certain about a substantial and near future pay raise, you may want to consider a 2/1 ARM. However, if you feel you need a little longer term to pay fixed low rates, you may want to consider a 5/1, 7/1 or even a 10/1 ARM.
Why should I get a 2/1 ARM home mortgage loan
A 2/1 ARM will allow you to take advantage of two years of guaranteed low payments.
How can I get a 2/1 ARM home mortgage loan
We offer 2/1 ARM to the right candidates. Click here to apply.
How can my FICO/Credit Score affect my mortgage rate
Banks typically want to see one to two years of good credit before approving a 2/1 ARM. If you score between 720 and 850, you are A-Paper which means you have great credit and are an excellent candidate for this loan. If you score below 660, you will have a hard time getting a lender to give you this loan. If you score below 620, you are Sub-Prime, or Non-Prime lending material.
Q: How much of a down payment do most lenders expect for a 2/1 ARM home mortgage loan?
A: Many lenders expect 5%-10% down for this kind of mortgage.
Q: Do 2/1 ARM home mortgage loan have caps?
A: Yes, most all ARMs have caps that are usually around two points for a year, and six points for a lifetime.
Q: What Indexes can I use for my 2/1 ARM home mortgage loan?
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