Adjustable-rate mortgages or ARMs appeal to some borrowers who plan to be in their homes for only a few years, anticipate significant pay increases or believe that interest rates will trend down over time.
An ARM may also help you qualify for a larger loan than a fixed-rate mortgage. Popular ARMs currently have their payments fixed for an initial period of between one and 10 years. Adjustments may be made every year after the initial period, with the new rate based on an index and margin. Most ARMs provided by HomeStreet Bank use the LIBOR index. ARMs have interest rate caps, per adjustment and lifetime.
For further details on HomeStreet Bank’s adjustable rate mortgages, talk to a HomeStreet Loan Officer.
FHA, VA and conventional loans are all available with either a fixed rate or an adjustable rate. HomeStreet Bank offers FHA and VA loans as fixed-rate loans, VA 3/1 ARMs and FHA one year, 3/1 and 5/1 ARMs. Conventional loans have a wide variety of fixed-rate, adjustable rate and even interest-only options. Consult with a Hawaii HomeStreet Loan Officer for the right loan program for you.