There has been a ‘Call “for” ARMs’ – the adjustable rate mortgage programs – in recent weeks. Borrowers, caught in the comfort zone of low rates, are searching for answers that do not include the necessity to buy down their interest rate, or potentially cut their home purchase budget. ARM’s, however, should be considered with caution: ARM’s have a “floor” rate, which is now currently defined as not lower than the start rate. As well, ARMs have a defined “cap” rate, which is the highest rate to which the rate can adjust, typically 5% – 6%. At the end of the fixed period (typically ranging from 3 to 10 years, as defined by the program), the interest rate can immediately experience an adjustment of that 5 – 6%, thus potentially shocking the borrower’s budget.
We have (temporarily) added quotes for some of the more popular ARM programs, just so you can compare. Note the differences in APR’s for fixed versus adjustable programs. If you find that you and/or your borrowers want a refresher course on ARM’s, or have other questions – including how APR’s are calculated, please feel free to call for any no obligation clarifications and/or mortgage analyses. We appreciate the opportunity to be your trusted mortgage source.
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ANASAZI MORTGAGE RATES* FOR Primary Residence (purchase only) As of 07/15/2013 *Programs require borrowers meet specific qualifications, not limited to credit scores, income, debt ratios, and other lender guidelines |
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| FIXED RATE Mortgages to $417,000 (Conforming) | ||||
|
w/ 1 Point |
APR |
w/ no Point |
APR |
|
| 30-YR |
4.125% |
4.250% |
4.375% |
4.441% |
| 15-YR |
3.25% |
3.466% |
3.50% |
3.569% |
| FIXED RATE Mortgages $417,001 – $2,000,000 (Jumbo) | ||||
|
w/ 1 Point |
APR |
w/ no Point |
APR |
|
| 30-YR |
4.875% |
5.254% |
5.375% |
5.397% |
| 15-YR |
3.875% |
4.059% |
4.625% |
4.661% |
| ADJUSTABLE RATE Mortgages to $417,000 | ||||
|
w/ 1 Point |
APR |
w/ no Point |
APR |
|
| 5/1 ARM |
3.375% |
6.531% |
NQ |
— |
| 7/1 ARM |
3.50% |
4.529% |
NQ |
— |
| ADJUSTABLE RATE Mortgages $417,001 – $2,000,000 | ||||
|
w/ 1 Point |
APR |
w/ no Point |
APR |
|
| 5/1 ARM |
3.125% |
6.263% |
NQ |
— |
| 10/1 ARM |
3.875% |
5.759% |
4.375% |
6.221% |
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Mortgages up to $2,000,000, other ARM Products & Interest Only programs are also available – Please call for Quotes. |
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Ginger Bowe Sullivan
ANASAZI MORTGAGE
1000 Cordova Pl, #56
Santa Fe, NM 87505
Phone: 505-995-8888
Toll-Free: 800-995-8888 (if calling outside Santa Fe)
Fax: 505-995-8885