Adjustable Rate Mortgage (ARM)
- The interest rate can change periodically based on a predetermined index and margin
- Available in adjustment periods of 1, 3, 5 and 7 years
- Buying power may increase because adjustable rates are traditionally lower than fixed rates
- Down payment can be as low as 10% for some programs (Private mortgage insurance may be required.)
- Costs include a low application fee (non-refundable) plus closing costs which may include points
- Reserves for taxes and insurance may by required
- Applicants qualify according to First Federal of Lakewood Underwriting Guidelines.
- Mortgage filing, hazard insurance, and flood determination is required.
- Late charge of 5% of the principal and interest payment if 15 days past due.
- $30 fee for NSF checks and ACHs submitted for payment.