FAIL (the browser should render some flash content, not this).
FAIL (the browser should render some flash content, not this).

Construction and Bridge Loans - Need a loan for building a custom home?

Debt Consolidation - Lower your monthly payments.

FHA & VA Loans - Want more information on government loans?

First Time Buyers - First time buying? We have a program for you!

Refinance - Planning to refinance your home loan?

Purchase Loans - Looking forward to purchasing a home?

Second Mortgages - Need to pull out another mortgage?

No Down Payment - Put zero down on a home.


100% Financing Loan - No down payment for borrowers with good credit.

Adjustable Rate Mortgages (ARM) - About ARM interest rates fluctuating

Balloon Mortgages - Allows low monthly payments and interest rates.

Fixed Rate Mortgages - Lock into a guaranteed rate.

Full Doc and Stated Income - This type of loan usually offers low rates.

Introductory Rate ARMs - More information on ARMs.

Reverse Mortgages - This converts equity into cash.

Types of Standard ARMs


Toll Free: 800.400.4863
Main Telephone: 949.797.9188
Fax: 949.797.9189
License #00954296
Email: [email protected]


Adjustable Rate (ARMs)


Take advantage of adjustable interest rates
With an Adjustable Rate Mortgage (ARM), you experience a lower, fixed interest rate for a set period of time after which the rate adjusts based on financial markets for the remainder of the mortgage term. So, your monthly payments are lower during the fixed rate period, but may increase after that period.

At the end of the fixed rate period, your monthly payment will change as the interest rate changes. The rate changes over time according to a formula and an adjustment schedule. As an example, a LIBOR index (London Market Interbank Offered Rates) rate of 2.00% plus a margin of 2.25% results in a "fully indexed rate" of 4.25%. So if the base/index interest rate has increased when it is time for a scheduled rate adjustment, your interest rate and monthly payment will also increase.

Some ARMs have a reduced interest rate (start rate) for an initial period of time. This rate is less than the current index plus the margin (the "fully indexed rate"). This means that your interest rate and monthly payment will be lower than normal for that initial period, but are likely to increase when that period is over, even if the index rate does not change. Your interest rate and monthly payment will increase even more if the index rate rises.

NLS has a choice of ARMs with a variety of initial fixed rate periods. In addition, we also offer an interest only ARM where you only pay the interest on your loan plus any applicable taxes and insurance. An interest only mortgage requires payment of only the interest amount for the first few years of the loan. If the interest only payments are made, then at the end of the interest only period you can expect:
  • The original principal amount borrowed will still be owed.
  • Payments will increase even if the interest rate stays the same.


to Mortgage Classroom