Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)
Hybrid ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages. A hybrid loan starts out with an interest rate that is fixed for a period of years (usually 3, 5, 7 or 10). Then, the loan converts to an ARM for a set number of years. An example would be a 30-year hybrid with a fixed rate for seven years and an adjustable rate for 23 years.
The beauty of a fixed-period ARM is that the initial interest rate for the fixed period of the loan is lower than the rate would be on a mortgage that's fixed for 30 years, sometimes significantly. Hence you can enjoy a lower rate while having period of stability for your payments. A typical one-year ARM on the other hand, goes to a new rate every year, starting 12 months after the loan is taken out. So while the starting rate on ARMs is considerably lower than on a standard mortgage, they carry the risk of future hikes.
Homeowners can get a hybrid and hope to refinance as the initial term expires. These types of loans are best for people who do not intend to live long in their homes. By getting a lower rate and lower monthly payments than with a 30- or 15-year loan, they can break even more quickly on refinancing costs, such as title insurance and the appraisal fee. Since the monthly payment will be lower, borrowers can make extra payments and pay off the loan early, saving thousands during the years they have the loan.
TCPA CONSENT AGREEMENT
By providing your phone number, you consent and agree to being contacted by us regarding your loan inquiry and mortgage products and services at the telephone number provided. You agree that we, or one of our authorized third parties, may contact you, including through automated means, via telephone or mobile device, even if your telephone number is listed on a Do-Not-Call registry.
This consent is not required to obtain our goods and services. If you prefer to be contacted by other means, please contact our customer support for assistance.
SMS CONSENT AGREEMENT
1. Opt-In Instructions: By providing your mobile phone number you are opting into SMS texts and you explicitly consent to receive promotional messages, updates, alerts, and other relevant information from us or one of our authorized third parties. You may also opt in by checking a box during the registration process or by sending a specific keyword to a designated phone number.
2. Frequency: Our SMS texts may be sent to you on a daily, weekly, monthly, or as-needed basis, depending on the nature of the information or updates we need to convey.
3. Message Charges: Standard messaging and data rates may apply depending on your mobile service provider. You are responsible for any fees or charges incurred from receiving SMS texts.
4. Opt-out Instructions: If you wish to stop receiving SMS texts from us, you can unsubscribe or opt-out at any time. To do so, simply send a specific keyword (e.g., "STOP," "OPT-OUT") to the designated phone number provided in our SMS texts. You may also follow the instructions provided in the SMS or contact our customer support for assistance.
This consent is not required to obtain our goods and services. If you prefer to be contacted by other means, please contact our customer support for assistance.