The Benefits of ARM’s; St Louis Mortgage Rate Update

Paramount Mortgage Company - St LouisEven though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:

  • ARM rates are now more attractive than ever before.
  • Rates have fallen to 3.50% for a 5/1 ARM.
  • ARMs are predictable.
  • Rates are capped so there are no surprises for borrowers.
  • Rates adjust only on the remaining principal of the loan.
  • Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based).
  • Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes.

An Adjustable Rate Mortgage (ARM) features a variable interest rate which is periodically adjusted after a set term, generally one to ten years. For example, a 3/1 ARM is the same fixed rate for three years, then adjusts annually, within established guidelines, to match current interest rates.  See how an ARM increases your buying power by clicking here.

ARMs may provide the security, flexibility and affordability prospective home buyers’ desire.

St. Louis MORTGAGE RATES for January 26, 2011:

Conventional 30-Year Fixed    4.875%

Conventional 15-Year Fixed    4.250%

Conventional 5/1 ARM 3.750%

FHA/VA 30 Year Fixed             4.750%

Jumbo 5/1 ARM 3.500%

Jumbo 15 yr Fixed                   4.250%

Jumbo 30 yr Fixed                   5.500%

Paramount Mortgage is a locally owned Mortgage Banker; we just celebrated our 40th anniversary. Great rates and programs are secondary to what is most desired in a lender relationship. The most sought-after aspects in this industry cannot be easily translated onto paper…learn more about us here.

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at or you can visit our company website at

Print Friendly, PDF & Email

Leave a Reply