Even 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 2.50% 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 (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: http://www.box.com/s/tgm7zaee7ugkzboja1eh
ARM’s may provide the security, flexibility and affordability prospective home buyers’ desire.
St. Louis MORTGAGE INTEREST RATES for December 7, 2011:
- Conventional 30-Year Fixed 4.00%/ 4.190% APR
- Conventional 15-Year Fixed 3.375%/ 3.565% APR
- Conventional 5/1 ARM 2.500%/ 3.159% APR
- FHA/VA 30 Year Fixed 3.875%/ 4.085% APR
- Jumbo 5/1 ARM 2.875%/ 3.016% APR
- Jumbo 15 yr Fixed 3.625%/ 3.875% APR
- Jumbo 30 yr Fixed 4.875%/ 5.125% 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: www.paramountmortgage.com
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 rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
Leave a Reply
You must be logged in to post a comment.