With a 5/1 ARM, get those lower interest rates and a fixed payment for the first five years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.
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* The rates provided assume the purpose of the loan is to purchase a property, with a loan amount of $200,000 and an estimated property value of $250,000. The property is located in zipcode 78732. The property is an existing single family home and will be used as a primary residence. The rate lock period is 45 days and the assumed credit score is 740.
A mortgage of $125,000 for 30 years at 3.87% APR requires a P&I payment of $587.80 per month. Taxes and insurance for escrow payment are not included; your actual payment obligation will be higher. Adjustable Rate Mortgages (ARM) are variable and your annual percentage rate may increase after the original fixed rate period. Assumes closing costs paid out of pocket and tax and insurance escrow account created. All rates and programs subject to loan underwriting and approval and may be subject to change depending on individual credit profile and other qualifications