Fixed rate home loans are simple and straightforward, and with MortgageBase, you can attain a super jumbo fixed rate mortgage at an excellent rate. We offer fixed rate mortgages with 15, 20, and 30 year terms.
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.
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:
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.
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.