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Adjustable Rate Mortgages

Adjustable Rate Mortgages

Start with contacting Windsor Federal's Mortgage Originator Triston Crosdale at 860.280.4967 or email today!  

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Rates as of Sunday, June 14, 2020

 

Adjustable Rate Mortgages

An adjustable rate mortgage or ARM, is a home loan that starts with a low fixed-interest rate for 3, 5, 7 or 10 years, followed by periodic rate adjustments. The Adjustable Rate Mortgage might be the right option for you. Rates are subject to change without notice.

Product Points Interest Rate APR Payment per $1,000
3 Year / 1 Year Adjustable Rate* 0.000 3.000% 3.061% $4.22
5 Year / 1 Year Adjustable Rate** 0.000 3.250% 3.160% $4.35
7 Year / 1 Year Adjustable Rate*** 0.000 3.500% 3.318% $4.49
10 Year / 1 Year Adjustable Rate**** 0.000 3.500% 3.404% $4.49

The interest rate will remain fixed until the first adjustment date and is subject to increase or decrease after consummation. Adjustments are based on the 1 year US Treasury weekly constant plus a 2.75% margin. However, at no time will the Annual Percentage Rate (APR) ever be higher than 18.00% regardless of the 1 year US Treasury rate.

Rates at time of application are for illustrative purposes only, and are not locked at time of online submission. Please call for more details!

  • Illustrated rates are for 1 - 4 Family Owner Occupied Residential Loans up to $500,000.
  • Annual Percentage Rates (APR) are based on $100,000 for conventional loans with a 20% down payment.

  • Any down payment less than 20% would require a monthly PMI (Private Mortgage Insurance) payment.

  • Maximum APR of 18.000%.
  • All payments quoted do not include taxes and insurance and actual payment may be greater.
  • Initial Unit Cost represents the monthly payment during the initial fixed term based on a $1,000.00 loan at the initial rate for a 30 year term.
  • Payment per $1,000.00 represents the monthly payment based on a $1,000.00 loan at the rate and term indicated.
  • At the adjustment which could be in 3, 5, 7 or 10 years depending on product. The maximum increase could be 2% yearly cap with a maximum of 5% lifetime cap over the life of the loan.
  • Subject to credit approval. Rates may also be impacted by other factors. Other terms and conditions may apply. Rates are subject to change without notice.
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  *Repayment terms on the 3/1 Year ARM with zero points are: 36 payments in the amount of $4.22 per $1,000 borrowed at an interest rate of 3.000%. Followed by 324 payments in the amount of $5.27 per $1,000 borrowed at an interest rate of 5.000% which represents the maximum interest rate at the time of the 1st annual adjustment.  The minimum interest rate at the time of first annual adjustment is 2.750%, which represents the floor, in the amount of $4.09 per $1000.  The life of loan interest rate cap is 5.000% over the initial rate or 8.000% for this example.

**Repayment terms on the 5/1 Year ARM with zero points are: 60 payments in the amount of $4.35 per $1,000 borrowed at an interest rate of 3.250%. Followed by 300 payments in the amount of $5.35 per $1,000 borrowed at an interest rate of 5.250% which represents the maximum interest rate at the time of the 1st annual adjustment.  The minimum interest rate at the time of first annual adjustment is 2.750%, which represents the floor, in the amount of $4.12 per $1000.  The life of loan interest rate cap is 5.000% over the initial rate or 8.250% for this example.

***Repayment terms on the 7/1 Year ARM with zero points are: 84 payments in the amount of $4.49 per $1,000 borrowed at an interest rate of 3.500%. Followed by 276 payments in the amount of $5.44 per $1,000 borrowed at an interest rate of 5.500% which represents the maximum interest rate at the time of the 1st annual adjustment.  The minimum interest rate at the time of first annual adjustment is 2.750%, which represents the floor, in the amount of $4.16 per $1000.  The life of loan interest rate cap is 5.000% over the initial rate or 8.500% for this example.

****Repayment terms on the 10/1 Year ARM with zero points are: 120 payments in the amount of $4.49 per $1,000 borrowed at an interest rate of 3.500%. Followed 240 payments in the amount of $5.33 per $1,000 borrowed at an interest rate of 5.500% which represents the maximum interest rate at the time of the 1st annual adjustment.  The minimum interest rate at the time of first annual adjustment is 2.750%, which represents the floor, in the amount of $4.20 per $1000.  The life of loan interest rate cap is 5.000% over the initial rate or 8.500% for this example.