10y/6m Adjustable-Rate Mortgage (ARM)

Purchases or Refinances: Here's What You Need to Know

Introduction

Qualified Property

One- to two-family residential owner-occupied purchase money or refinances.

Max Loan to Value

Purchase:

• Single family – 95% of sale price
• Condo – 90% of sale price
• Two-family – 85% of sale price

Refinance:

• Single family or Condo – up to 80% of appraised value as "Cash Out"
• Two-family – up to 75% of appraised value as "Cash Out"
• Single family or Condo – 90% of appraised value for "Limited Cash Out"
• Two-family – 85% of appraised value for "Limited Cash Out"

Loan Amount

Minimum – $25,000
Maximum – $806,500; $1,209,750 for high cost areas as designated by Fannie Mae

Jumbo loan amounts available to well-qualified borrowers. The interest rate is 0.25% higher than advertised rate.

Term(s)

15-year, 20-year, and 30-year terms are available.

Escrow Account

Required when loan-to-value ratio is 80.01% or higher.
If less than 80% loan-to-value ratio, is based on credit worthiness.
PMI required when loan to value ratio is 80.01% or higher.
Flood insurance required in escrow if property is in a flood zone.

Payment Options 

Monthly

Interest Rate Change

Rate remains the same for the first ten years, then adjusts once every six months. 

Rate will not adjust below 3.00% APR and will not increase more than 5.00% APR above initial rate at closing.

Proof of home owner's insurance is required.