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

Over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name” however, there are truly benefits to utilizing an ARM, which include:

  • ARM rates are now more attractive than ever before.
    • Rates have fallen to 2.625% for a 5/1 ARM.


  • ARM’s 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/increase, but the adjustments are limited to a prevailing market index in which the ARM is based.
    • Most ARM’s do not have a pre-payment penalty
  • Lower Monthly Payments which Increase your buying power.


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 5/1 ARM is the same fixed rate for five years, then adjusts annually, within established guidelines, to match current interest rates. ARM’s may provide the security, flexibility and affordability prospective home buyers’ desire.

St. Louis MORTGAGE INTEREST RATES for October 24, 2012:

  • Conventional 30-Year Fixed 3.375%/ 3.652% APR
  • Conventional 15-Year Fixed 2.750%/ 2.845% APR
  • Conventional 7/1 ARM 2.625%/ 3.332% APR
  • FHA/VA 30 Year Fixed 3.25%/ 3.302% APR
  • Jumbo 5/1 ARM 2.625%/ 2.426% APR
  • Jumbo 15 yr Fixed 3.000%/ 3.094% APR
  • Jumbo 30 yr Fixed 4.625%/ 4.719% APR

*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.

Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website:

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


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