Alaska
Home Loans - Standard ARM Programs
ARMs
with different indexes are available for both purchases and
refinances. Choosing an ARM with an index that reacts quickly
lets you take full advantage of falling interest rates. An index
that lags behind the market lets you take advantage of lower
rates after market rates have started to adjust upward.
A
few options are available to fit your individual needs and your
risk tolerance with the various market instruments.
ARMs
with different indexes are available for both purchases and
refinances. Choosing an ARM with an index that reacts quickly
lets you take full advantage of falling interest rates. An index
that lags behind the market lets you take advantage of lower
rates after market rates have started to adjust upward.
The
interest rate and monthly payment can change based on adjustments
to the index rate.
6-Month
Certificate of Deposit (CD) ARM
Has a maximum interest rate adjustment of 1% every six months.
The 6-month Certificate of Deposit (CD) index is generally considered
to react quickly to changes in the market.
1-Year
Treasury Spot ARM
Has a maximum interest rate adjustment of 2% every 12 months.
The 1-Year Treasury Spot index generally reacts more slowly
than the CD index, but more quickly than the Treasury Average
index.
6-Month
Treasury Average ARM
Has a maximum interest rate adjustment of 1% every six months.
The Treasury Average index generally reacts more slowly in fluctuating
markets so adjustments in the ARM interest rate will lag behind
some other market indicators.
12-Month
Treasury Average ARM
Has a maximum interest rate adjustment of 2% every 12 months.
The treasury Average index generally reacts more slowly in fluctuating
markets so adjustments in the ARM interest rate will lag behind
some other market indicators.
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