5/1 FHA ARM1
3.875%
5.869%APR
An FHA Loan May Be Right for You
- If you have less-than-perfect credit
- If you have at least 3.5% available down payment
- If you have moderate debt
- Lower initial interest rate fixed for the first 5 years
- Could mean lower monthly payments for the first 5 years
- The rate cap limits how high your interest rate can go
- A potential option if you anticipate life events, such as a career move or family changes
1Loan example shown is based on 3.5% down payment with a sales price of $349,990, a loan amount of $343,651, an upfront mortgage insurance premium of 1.75%, and a monthly payment of $2,445. Total monthly payment includes principal, interest, estimated taxes, mortgage insurance, homeowners insurance and HOA. An ARM is a mortgage where the interest rate changes periodically, which could cause the monthly payment to be higher or lower. Interest rate is fixed for the first 5 years and will adjust every year thereafter. The first adjustment will have a 1.000% cap. Adjustments every year thereafter will have a cap of 1.000% and a lifetime cap of 5.000% with a margin of 2.000%. The fully indexed rate of 5.830% combines the index and margin, and it determines the monthly payment amounts after the fixed-interest period during each adjustment period. Max interest rate can be 8.875%.
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