5/1 FHA ARM1
3.875%
5.869%APR
5/1 VA ARM2
3.875%
5.476%APR
1 Payment shown above is based on an FHA 30-year adjustable-rate mortgage (ARM) with a sales price of $474,990, a loan amount of $466,387, an up-front mortgage insurance premium of 1.75%, and a monthly payment
of $2,894. Purchase requires down payment of 3.5%. 2 Payment shown above is based on a VA 30-year adjustable-rate mortgage with a sales price of 474,900, a loan amount of 485,202, financed VA funding fee ≤2.15%
for first-time use on VA loan, and a monthly payment of $2,773. Purchase requires down payment of 0%. 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% cap. Adjustments every year thereafter will have a cap of 1% and a lifetime cap of 5% with a margin of 2%. The fully indexed rate of 5.800% 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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