NMLS ID:1747872

 

 

 

© 2018  BEACON POINT MORTGAGE SOLUTIONS, LLC 

  • Facebook - White Circle
  • Twitter - White Circle
  • Google+ - White Circle

Terms of Use 

LOAN PROGRAMS & RATES expressed are representative of some product offerings but are subject to CHANGE at anytime.

*Florida Second Home Specialist is not a state designation nor a Florida State endorsement.

“THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE GOVERNMENT.” 

Instead this service reflects the scope of our work and commitment to make it easy for out of state residents to finance a second residence in Florida.

 

Call us! 800-466-0664

Hybrid ARMs

(3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)

Here you go, the cheapest mortgage rates suitable to fulfill your short term objectives!

 

Hybrid ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages. A hybrid loan starts out with an interest rate that is fixed for a period of years (usually 3, 5, 7 or 10). Then, the loan converts to an ARM for a set number of years. An example would be a 30-year hybrid with a fixed rate for seven years and an adjustable rate for 23 years.

The beauty of a fixed-period ARM is that the initial interest rate for the fixed period of the loan is lower than the rate would be on a mortgage that's fixed for 30 years, sometimes significantly. Hence you can enjoy a lower rate while having period of stability for your payments. Checkout our 5/5 Hybrid.

FLY HIGH WITH A 5-YEAR ARM

KEY FEATURES

  • Initial rate is fixed for 5 years before it adjusts, then adjusts every 5 years after.

  • Adjustments limited to 2% at each adjustment period

  • Rate is capped at 5% from the initial rate

The Five-Five 5/5 Hybrid

For home buyers who are looking for a perfectly balanced loan, Beacon Point 

can offer both the stability of a fixed mortgage and the low rate of an adjustable mortgage.

Beacon 5/5 ARM provides the perfect balance. The low initial rate of the 5/5 ARM is fixed for five years before it can adjust — then it’s fixed for another five years and so on.

Plus, it can only adjust by a maximum of 2% each time and it’s capped at just 5% from the initial rate over the entire 30-year life of the loan.

Beacon 5/5 ARM is a great option for just about any home buyer, especially those who plan to be in their homes for up to about 15 years, and the guidelines are the same as for all other Beacon non-Jumbo ARMs.

 

 

ALL  ABOUT  ARMS

I

What Is an ARM?

An adjustable-rate mortgage, or ARM, starts with an initial rate, an introductory interest rate that lasts a set period of years and adjusts annually thereafter for the remaining term of the loan.

 

.

 

General Advantages and Disadvantages

The initial interest rates for adjustable rate mortgages are usually much lower than a fixed rate mortgage, which in turn means your monthly payment is lower. We don't like to user the term teaser rate in reference to the initial rate but instead the cheapest rate possible. If you only plan to stay in your home for a short period of time, or are making an otherwise short term  investment than the ARM is the best fit. 

The disadvantages of ARMs are the risk created by the uncertainty of indexed rates that it is tied to when the rate adjusts after the after the initial fixed-rate period ends. However, this risk is mitigated by having a cap on the index rate when it adjusts and a lifetime cap on the note rate.  Also taking out a loan that has no prepayment penalty gives you the flexibility you need to payoff the mortgage early through a refinance or cash payment and during the initial fixed rate term, thus avoiding the risk of the adjustment of rate all together. 

I

What Happens When My ARM Loan Adjusts?

You can determine how much your ARM’s interest rate is going to increase or decrease after the initial fixed-rate period ends based upon the index and margin it is tied to. An index is a benchmark variable interest rate that is published regularly in Journals like the Wall Street Journal. Typical index rates that are associated with ARMs are LIBOR (London Interbank Offered Rate), COFI (11 District Cost of Funds), T-Bill (U.S. Treasury Bill) and CMT (Constant Maturity Treasury), etc. See our page on Mortgage Basics.

A margin on the other hand is not variable but a constant rate throughout the loan term. This fixed percentage when added to the index rate gives the fully indexed rate for an adjustable-rate mortgage. Say you have an index rate of 2% and the margin is 3% then, then your fully indexed interest rate would be 5 percent.

Beacon Point often negotiates your margin with lenders in order to get you the best deal possible.

You can consult with your loan officer about the broken down for each of our individualized ARM mortgage quotes. Specifically, the how long the rate is fixed, the initial interest rate, the index type, the margin, the initial cap, the periodic cap and the lifetime cap.  Beacon Point will also send you a loan estimator which will tell you how much you should expect to pay during the initial fixed-rate period.

For home buyers who are looking for a perfectly balanced loan, Beacon Point can offer both the stability of a fixed mortgage and the low rate of an adjustable mortgage.  Beacon 5/5 ARM provides the perfect balance. The low initial rate of the 5/5 ARM is fixed for five years before it can adjust — then it’s fixed for another five years and so on. Plus, it can only adjust by a maximum of 2% each time and it’s capped at just 5% from the initial rate over the entire 30-year life of the loan.

Beacon 5/5 ARM is a great option for just about any home buyer, especially those who plan to be in their homes for up to about 15 years, and the guidelines are the same as for all other Beacon non-Jumbo ARMs.

WHAT THEY'RE SAYING of the 5/5 Hybrid Loan

The 5/5 ARM really is a really great option for a lot of borrowers — especially since most of them will move or refinance in less than 10 years. With only two adjustments in the first 15 years — and with low caps on those adjustments — the 5/5 ARM gives them a great rate and a lot of flexibility.