Super Jumbo Fixed Term ARMs
MortgageBase provides super jumbo fixed term adjustable rate mortgages (ARMs) at excellent rates. If you’re shopping around for the best rate on a super jumbo mortgage, don’t hesitate to fill out our form to get a rate quote. We offer mortgages with 5, 7, and 10-year fixed terms, followed by adjustable interest rate periods for the duration of the life of the loan. Here are the details:
What Is a Fixed Term ARM?
Fixed term ARMs have two separate payment periods: a fixed rate period and an adjustable rate period. During the first period, the borrower simply pays a fixed interest rate on the value of the loan. The fixed interest rate is established during the underwriting of the loan, and it will not change throughout the initial payment period. The fixed rate period can be 5, 7, or 10 years long, depending on the loan contract.
During the second payment period of the loan — the adjustable rate period — the value of the loan is subject to an adjustable rate. The interest rate can fluctuate while the borrower pays down the principal on the mortgage.
How is the interest rate determined?
Adjustable interest rates are determined by third-party “indexes” which can adjust in between pay periods. ARMs are subject to rate changes based on LIBOR and U.S. Treasury indexes. LIBOR stands for “London Interbank Offered Rate”, which refers to interest rates set based on London banking operation. The LIBOR index is the most commonly utilized index for mortgage lenders.
The Treasury Index is a United States-based index which accounts for fluctuations in the sale of U.S. Treasury bills and the Treasury’s daily yield.
In any instance, lenders utilize the index on top of an interest margin, to determine the current rate on a given loan. An index is usually subject to adjustments every six or 12 months.
Here at MortgageBase, we offer excellent rates on our super jumbo fixed term ARMs. Your initial rate will be determined based on a variety of factors, including all of the following:
- Your credit score.
- The location and value of the property.
- The amount of the loan.
- The down payment on the property.
- The term of the loan.
We offer a variety of super jumbo fixed term ARMs, including ARMs with 5, 7, and 10-year fixed interest rate terms. These loans are subject to an adjustable rate for the remaining term of the loan. If you’re curious about our loan options, don’t hesitate to get in touch with your lender here at MortgageBase.
Paying Down Your Fixed Term ARM
While there’s a minimum required payment for super jumbo fixed term ARMs, you can always pay more to reduce your future costs. If you’re looking for a loan with an even lower minimum required payment during its initial term, take a look at our interest only super jumbo mortgages.
Can you pay down a fixed term ARM early?
Absolutely. Borrowers are welcome to pay more than the minimum due for the entire duration of their loan. Paying more than the minimum will result in lower minimum payments down the line. Take note, however, that the length of the term of the loan won’t change. If you’re looking for a mortgage that you can pay off before its term, take a look at our fixed rate super jumbo mortgages.
Get a Quote
If you’re ready to get started, get a super jumbo fixed term ARM rate quote. Here at MortgageBase, we’re proud to provide super jumbo mortgages at competitive rates. As always, feel free to reach out to us if you have any questions about our home loans.