7/1 Adjustable Rate Mortgage (ARM)

Why should I get a 7/1 ARM home mortgage loan

A 7/1 ARM home mortgage loan is a good option for those who may want to sell or refinance after seven years.

What can I use a 7/1 ARM home mortgage loan for and what are my options

You can use a 7/1 ARM to purchase any type of residence (primary or secondary). You can index your 7/1 ARM by COFI, COSI, LIBOR, or 12 MTA.

Why should I get a 7/1 ARM home mortgage loan

For the first seven years of your 7/1 ARM you will pay a low, fixed interest rate. After the initial seven years, your interest rate will change annually and according to whatever index you and your lender agree upon. If you stick to your payments, your mortgage could be fully amortized in thirty years. In this way, the 7/1 ARM is an alternative to the Thirty Year Fixed Rate Mortgage that lets you take advantage of both fixed rates and adjustable rates.

How can I get a 7/1 ARM home mortgage loan

We would be happy to help you get a 7/1 ARM. Click here to start filling out your application.

How can my FICO/Credit Score affect my mortgage rate

Your FICO and Credit Score are extremely important in determining your mortgage rate. If you score between 720 and 850 you are A-Paper. You have excellent credit and should have no problem securing the loan you need. If you score below 660, many lenders will be wary of working with you. The official cutoff score for Sub-Prime or Non-Prime credit is 620.

Q: Are there alternative term lengths to a 7/1 ARM?
Yes, you can also get a 1/1 ARM, 2/1 ARM, 5/1 ARM, or even 10/1 ARM.

Q: What if the interest rates soar after my fixed rate period is up? Could I end up paying ten percent more than my original interest rate?
No. Your 7/1 ARM will be capped. Most 7/1 ARMs have an annual cap of two points and a lifetime cap of six points.

Q: Will I need a large down payment for a 7/1 ARM?
Most lenders require anywhere from a 5% to 10% down payment for this type of loan.

Q: Can I get a 7/1 ARM if I am refinancing?
Most lenders offer 7/1 ARM as a refinance loan. But if rates are rising you might want to think about refinancing and getting a fixed rate mortgage instead.

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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