Adjustable Rate Mortgage Info

Adjustable Rate Mortgage Information

c8f924f4f5e6ff6885b5ef15116d8fe3When choosing a loan product it is important to understand the proposed program in its entirety. Where fixed rate mortgages tend to be straightforward, an adjustable rate mortgage is often times misunderstood. Before choosing an adjustable rate mortgage review the information below to better understand the array of adjustable rate mortgage products Nikitas Kouimanis offers.


10/1 Adjustable Rate Mortgage

This is an ideal option for borrowers who plan to keep the loan for longer than seven but less than 10 years. The interest rate is fixed for the first 120 months of the loan’s 360 month term. At the end of the 120 months, the interest rate adjusts to the lower of:

Thereafter, the interest rate will adjust every 12 months to the lower of:

  • The 1-Year LIBOR Index plus 2.25%
  • The previous rate plus 2.00%, or
  • The initial start rate plus 5.00%

7/1 Adjustable Rate Mortgage

This is an ideal option for borrowers who plan to keep the loan longer than five but less than seven years. The interest rate is fixed for the first 84 months of the loan’s 360 month term. At the end of the 84 months, the interest rate adjusts to the lower of:

Thereafter, the interest rate will adjust every 12 months to the lower of:

  • The 1-Year LIBOR Index plus 2.25%
  • The previous rate plus 2.00%, or
  • The initial start rate plus 5.00%

5/1 Adjustable Rate Mortgage

This is an ideal program for borrowers who plan to keep the loan longer than three but less than five years. The interest rate is fixed for the first 60 months of the loan’s 360 month term. At the end of the 60 months, the interest rate adjusts to the lower of:

Thereafter, the interest rate will adjust every 12 months to the lower of:

  • The 1-Year LIBOR Index plus 2.25%
  • The previous rate plus 2.00%, or
  • The initial start rate plus 5.00%

3/1 Adjustable Rate Mortgage

This is an ideal option for borrowers who plan to keep the loan for longer than one but less than three years. The interest rate is fixed for the first 36 months of the loan’s 360 month term. At the end of the 36 months, the interest rate adjusts to the lower of:

Thereafter, the interest rate will adjust every 12 months to the lower of:

  • The 1-Year LIBOR Index plus 2.25%
  • The previous rate plus 2.00%, or
  • The initial start rate plus 6.00%

1/1 Adjustable Rate Mortgage

This is an ideal option for borrowers who know they only internet to keep the loan for less than one year. The interest rate is fixed for the first 12 months of the loan’s 360 month term. At the end of the 12 months, the interest rate adjusts to the lower of:

Thereafter, the interest rate will adjust every 12 months to the lower of:

  • The 1-Year LIBOR Index plus 2.25%
  • The previous rate plus 2.00%, or
  • The initial start rate plus 6.00%