Lenders are always looking for new ways to help buyers get into the home of their dreams. Today they frequently use adjustable rate mortgages (ARMs) to increase the buyer's options. The interest rate on an ARM changes periodically to reflect changes in the national market. Since the loan starts at a rate that is lower than the national average, lenders can reduce the borrower's qualifying criteria.

One way to distinguish between different ARMs is by the national index to which they are tied. Some ARMs are tied to a slow-moving index called the cost-of-funds index; these are usually the most desirable. ARMs that are tied to a more volatile index, such as Treasury Notes, can be adjusted upward at a quicker rate. Look at all the factors before choosing a loan. The faster index loan may start out with lower rates and lower monthly payments, but the slower index ARM may eliminate your concern about having to re-finance down the road.

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The Caprio Group Inc.
The Caprio Group Inc.
3001 Lava Ridge Ct., Ste. 100
Roseville, CA 95661
916-580-6030
Fax: 916-580-6130
capriogroup@NUMBER1EXPERT.com

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With a combined 50+ years of real estate experience, we confidently offer our clients a level of performance that has consistently earned us the rank of top producers. We also provide aggressive, active marketing and are persistent and focused on achieving the results our clients desire. Because you have the support of an entire team, you can rest assured that all the “i’s” are dotted and the “t’s” are crossed—nothing slips through the cracks because everything is checked and double checked. The team approach also allows us to give you our undivided attention—someone is always available and working for you.