lifetime caps
FHA ARM’s are AVAILABLE
April 5, 2010 by Financemyhome · Leave a Comment
Many lenders/brokers are not offering the FHA ARM. WE DO!!!. FHA ARM’s adjust 1 percent per year, once per year, with a lifetime maximum adjustment of 5% over the start rate. Let’s look at a WORST case example. Lets start a 4% year 1. Upon adjustment with worst case, we’re looking at yr 2- 5%, yr 3- 6%, yr 4-7%, yr 5-8%, yr 6-9%. As with all ARM’s there is a formula to make the adjustment based on adding a margin to an index. The conventional ARMS usually have higher annual and lifetime caps, as well as a larger down payment requirement.
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