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

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:

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:

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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