Why would I want a 3/1 ARM mortgage loan
You may want a 3/1 ARM if you might be interested in selling your house after a few years.
What can I use my 3/1 ARM mortgage loan for and what are my options
Why should I get a 3/1 ARM mortgage loan
The 3/1 ARM is ideal if you want a good three years of predictability. During the first three years of your term you will pay a low, fixed interest rate. After that, your interest rate will fluctuate with the market, and will change annually. If you need a few years to pay off credit cards or make your youngest child’s last tuition payments before you can make larger house payments, this may be a good option for you.
How can I get a 3/1 ARM mortgage loan
We offer the 3/1 ARM home mortgage loan. Click here to get started.
How can my FICO/Credit Score affect my mortgage rate
Your Credit Score and FICO are vital to determining any mortgage rate you may apply for. If you score between 720 and 850, you are A-Paper. You have good credit and will have little problem securing the right kind of loan for your situation. If you score below 620, you are in Sub-Prime or Non-Prime lending. However, you will find that many lenders will not work with you if you score under 660.
Q: How much of a down payment do most lenders expect for a 3/1 ARM home mortgage loan?
A: Many lenders will expect anything from 5% to 10% of the price of your home as a down payment.
Q: Do 3/1 ARM mortgage loans have caps?
A: Like most all ARM loans, the 3/1 ARM has caps. The annual cap is usually about two points, and the lifetime cap is usually six points.
Q: What Indexes can I use for a 3/1 ARM mortgage loans?
A: Most lenders offer the traditional COFI, COSI, and LIBOR among others.
Q: What is a comparable alternative to 3/1 ARM mortgage loan?
A: The 2/1 ARM and 5/1 ARM are similar mortgages that simply vary by the initial fixed rate term’s length. Other mortgages that offer low initial payments are the Interest Only Loan or a LIBOR mortgage.
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