There are a variety of mortgage programs to choose from. Our consultants will work with you to determine the best option for you. Below is an explanation of available fixed rate and adjustable mortgage programs.
The Fixed Rate Mortgage
A mortgage in which the interest rate is fixed for the term of the loan. For example, with a 30 year fixed mortgage the interest rate will remain the same for the 30 year period. In most cases typically the shorter the term the lower the interest rate.
Fixed Rate Mortgage Terms:
30 Year Fixed
25 Year Fixed
20 Year Fixed
15 Year Fixed
10 Year Fixed
The Adjustable Rate Mortgage (ARM)
A mortgage in which the interest rate is adjusted periodically, based on the pre-selected index, also known as the variable rate mortgage.
The interest rate is adjusted to the length of time chosen by you the
client and is based on your needs and loan scenario. The ARM will adjust on the anniversary date of the loan parameters. All ARM loans have adjustment caps. They have a cap per adjustment period and a life of the loan cap. The caps vary per loan program and lender to lender. All ARM loans have a fixed margin and are tied to a program specific index, such as but not limited to the T-Bill or LIBOR. In order to calculate the rate at time of adjustment you would add the index plus the margin which totals the fully adjusted rate. However, this fully adjusted rate cannot exceed, up or down, the current rate plus the per adjustment cap.
Example:
If your current rate is 4.50% with a 1% adjustment cap the maximum increase/decrease would be 1% regardless of the fully adjusted rate.
Available ARM products:
6 month ARM The rate is fixed for the first 6 months then can be
adjusted up or down on an semi-annual basis for the life of the loan, based on the fully adjusted rate.
1 year ARM The rate is fixed for the first year then can be
adjusted up or down on an annual basis for the life
of the loan, based on the fully adjusted rate.
3/1 ARM The rate is fixed for the first 3 years then can be
adjusted up or down on an annual basis for the life
of the loan, based on the fully adjusted rate.
5/1 ARM The rate is fixed for the first 5 years then can be
adjusted up or down on an annual basis for the life
of the loan, based on the fully adjusted rate.
7/1 ARM The rate is fixed for the first 7 years then can be
adjusted up or down on an annual basis for the life
of the loan, based on the fully adjusted rate.
10/1 ARM The rate is fixed for the first 10 years then can be
adjusted up or down on an annual basis for the life
of the loan, based on the fully adjusted rate.
Call 1-800-CTC-6700 or email info@coastotcoastmtg.com for a custom quote and a FREE mortgage analysis from one of our mortgage professionals.
