- 5/5 ARM: Fixed rate for five years and then adjusts every 5 years based on current interest rates.
- 7/1 ARM: Fixed rate for seven years and then adjusts every year based on current interest rates.
- 10/1 ARM: Fixed rate for ten years and then adjusts every year based on current interest rates.
There are many reasons borrowers choose an ARM loan over a fixed-rate:
- ARM loans can keep mortgage payments lower during the early years of the loan.
- ARM loans can be more favorable for those planning on moving in the next few years, such as individuals seeking starter homes or homeowners who may anticipate downsizing within the next 5 to 10 years.
- ARM loans may be a good option for those that think interest rates will decrease in the future.
Program Highlights:
- Primary and second homes only
- Up to 95% Loan-To-Value (5% down payment) on primary purchases and rate/term refinances
- 90% Max LTV allowed for second home purchases and rate/term refinances
- Virginia, North Carolina and South Carolina