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Start Rates and Teaser Rates:
Making sense of adjustable rate mortgages

IF YOUR ANSWER IS YES: then you need to know more about adjustable rate mortgages. In simplistic terms, an ARM loan has a fixed rate for a portion of the loan's full 30 year term, and then generally becomes a 1 year adjustable for the balance of the term. Your monthly payment is tied to a rate that adjusts or “becomes variable” based on a number of factors; all of which need to be clear to you before you close your loan.

Savvy consumers of ARM loans often don’t reach the point their loans become variable (and the most vulnerable), because they either refinance into another adjustable rate loan, they refinance into a fixed-rate loan, or sell the house. Because ARM mortgages have many components, you should ask our experienced mortgage loan originators about:

• ARM Loan Start (or teaser) Rates
• ARM Loan Rate Index
• ARM Mortgage Loan Margins
• ARM Fully Indexed Rates
• ARM Rate Adjustment Cap

ARM loans are typically based on 30-year terms. In addition, adjustable rate mortgage's rates are fixed for a set amount of time and then change at set intervals over time. Look over the list below of the adjustable rate loan programs we offer and compare the numbers. Once you're ready to move forward, use the handy link to our Pre-Approval Center located on this page, contact FNE online or call 800-641-1715 and speak to one of our ARM mortgage Loan Officers today.

• 1-Year Adjustable Rate Mortgages
• 3/1 Adjustable Rate Mortgages
• 5/1 Adjustable Rate Mortgages
• 7/1 Adjustable Rate Mortgages
• 10/1 Adjustable Rate Mortgages

IF YOUR ANSWER WAS NO: then adjustable rate mortgages are probably not right for you... With rates expected to rise over the next decade, locking in a rate for the long term sounds like a better idea for you... Use the link to learn more about Use this link to find out more about fixed rate mortgages.