Adjustable Rate Mortgage
3/1 ARMThis type of loan has monthly payments that are based on a 30 year repayment schedule and the interest rate remains fixed for the first three years. After that time the interest rate (monthly payments) may change year after. This is called the adjustment period.
The new rate is based upon changes in a financial index and is calculated by adding a specified amount to the index. The amount that is added to the index is called the margin. Let's say the index equals 4.5% at the time of adjustment and the margin equals 2.50%, the new interest rate would be 7%. However, adjustable loans usually have an adjustment cap. So if the adjustment cap is 2%, the new rate would be 6.5%.
There is also a lifetime cap which limits how much the rate can go up or down during the life of the loan. These loans can work out well for people who stay in their house for the short term.
5/1 ARMThis type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first five years.
7/1 ARMThis type of loan is similar to the 3/1 ARM except for the fact that the interest rate remains fixed for the first seven years.
Don't Wait! Find out about your options Today!
Our Happy Clients
"Darren Scott and his time were very organized and walked us through the entire process. His team is always available to answer questions and all fees quoted upfront were accurate and matched the final closing numbers. I would recommend Darren and his team to anyone looking for a home loan."
"Darren was very helpful thru the process and made it simple as we purchased our home. he worked very well with our agent and we closed without any issues and on time. I recommend him if you are looking for honest and straight forward agent that looks out for you."
"Tahir and Shakira were extremely helpful the entire time. As a first time home buyer, I was not very knowledgeable about the process so I felt very fortunate to have these two to call on. They were very responsive and willing to help me understand every detail as we went along. My family and I are very happy in our new home! I HIGHLY RECOMMEND RESIDENTIAL SAVINGS!"
Tahir Khan and Lisa are a great team you can trust.They keep their word and make sure everything will go smoothly.Had a excellent experience with them when I moved in to FL from out of state.Much recommended.
I worked with Residential Savings Mortgage for the purchase of our home and again for my refinance . I can honestly say that Michael Carmell and the staff there made my process fast, easy and pleasant . They are very helpful and informative through it all. After my first experience with them, I didn't think twice. I called Michael as soon as I was thinking about refinancing my home because I knew I could trust them and that I would be in good hands. I highly recommend Residential Savings Mortgage. They truly deliver what they promise and guide you step by step until the very end .
My experience with Michael Carmell at Residential Savings Mortgage was excellent. From the beginning to end he was always very professional. I did not feel pressured at all, he was very polite and patient. Thank you Michael for the painless process, I really appreciate the fast turnaround. Thank you for answering all my questions. I would highly recommend Michael to friends and family. Michael you have been AWSOME!!! Keep up the great job. Thank you and God Bless