| Conforming & Jumbo ARM Program* | Initial | Periodic | Lifetime |
|---|---|---|---|
| 3/6 month | 2.0% | 1.0% | 5.0% |
| 5/6 month | 2.0% | 1.0% | 5.0% |
| 7/6 month | 5.0% | 1.0% | 5.0% |
| 10/6 month | 5.0% | 1.0% | 5.0% |
Definitions
Interest rate caps — represents the highest amount the interest rate could increase or decrease on the interest rate change dates.Initial cap — applies only to the initial interest rate change date that occurs immediately after the fixed period ends.
Periodic cap — the amount the interest rate could increase or decrease per interest rate change date subsequent the initial interest rate change date. The interest rate change date varies per ARM loan program. For 3/6 month, 5/6 month and 7/6 month ARMs the interest rate date is every six months.
Lifetime cap — represents the highest amount the rate could increase or decrease from the initial interest rate on the loan.
* Adjustable Rate Mortgages are defined by initial fixed period, then subsequent adjustments after. For example: 3/6 month = fixed for first 3 years/rate will adjust every 6 months thereafter.
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