Jumbo Adjustable Mortgage Rates

 

Jumbo Adjustable Mortgage Rates

With an adjustable mortgage rate, your payments will vary over time. Adjustable rate mortgages typically have an initial fixed rate lower than the rate of a comparable fixed rate mortgage. The initial fixed rate period is followed by adjustment intervals. For example, a "5/1 ARM" is fixed at an initial low rate for the first 5 years, and then adjusts every year based on an index. Common ARMs are: 1/1, 3/1, 5/1, 7/1, and 10/1. The first number indicates the number of years the rate is fixed. The second number indicates how often the rate changes after the fixed period. There are also caps on how higher or low the rate can move per adjustment period and over the life of the loan.

Common Types of Indexes

* London Inter Bank Offering Rate (LIBOR)
* 12-Month Treasury Average (MTA)
* Constant Maturity Treasury (CMT)
* Prime Rate

Non-economic factors that effect adjustable jumbo mortgage rates

Mortgage rates can be dependent on your credit history, property, debt to income ratio, loan type, term and loan amount.