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Adjustable Rate Mortgage

Adjustable rate mortgages can be a tremendous program for borrowers who want their payment fixed for a shorter period of time.  Since the payments are fixed for a shorter period the rates are often much more attractive than the 30 year fixed program.  An ARM product can give a borrower more buying power since the rates are lower.  They are also great for clients who no they will only be in their home for a certain period of time. 

10/1 ARM

The 10 year ARM rates often run very close to the 30 year fixed.  Be sure to compare the 10 year ARM against the 30 year fixed to be sure the savings difference is worth it.  You’ll find a more significant interest rate difference in the 7 and 5 year ARM programs. 
The payments are fixed on this program for the first 120 months.  After which the rate can rise by the following adjustment
  1. The 1-Year LIBOR Index plus 2.25%, or
  2. The initial start rate plus 5%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

  1. The 1-Year LIBOR Index plus 2.25%,
  2. The previous rate plus 2%, or
  3. The initial start rate plus 5%.

7/1 ARM

The 7 year ARM offers a great balance between the payments being fixed for a good stretch of time and giving the benefit of securing a lower rate compared to fixed loan products.  There have been analysis done showing the average homeowner keeps their mortgage for 7 years before refinancing or selling.  This is probably why the 7 year ARM is the most popular program in this category.
The interest rate and payment is fixed for the first 84 months of the loan’s 30 year term. At the end of the 84 months, the interest rate adjusts to the lower of:

  1. The 1-Year LIBOR Index plus 2.25%, or
  2. The initial start rate plus 5%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

  1. The 1-Year LIBOR Index plus 2.25%,
  2. The previous rate plus 2%, or
  3. The initial start rate plus 5%.

5/1 ARM

The 5 year ARM has the lowest rate available and for this reason is also very popular amongst clients.  If you are interested in having the lowest payment possible this program is for you.  Clients who choose this program are often looking to maximize their cash flow or increase their purchasing power.

The interest rate and payment is fixed for the first 60 months of the loan’s 30 year term. At the end of the 60 months, the interest rate adjusts to the lower of:

  1. The 1-Year LIBOR Index plus 2.25%, or
  2. The initial start rate plus 2%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

  1. The 1-Year LIBOR Index plus 2.25%,
  2. The previous rate plus 2%, or
  3. The initial start rate plus 5%.
Instant Rate Quote

Today's Rates (First Loans)

  • Super Conforming
  • JUMBO
Program Rate Points APR
30 Year Fixed Rate - Super Conforming 4.75% 0 4.883%
15 Year Fixed Rate - Super Conforming 4.25% 0 4.477%
5 Year Adjustable Rate Mortgage - Super Conforming 4.75% 0 4.406%
7 Year Adjustable Rate - Super Conforming 4.875% 0 4.557%
10 Year Adjustable Rate - Super Conforming 4.875% 0 4.687%
Program Rate Points APR
30 Year Fixed Rate - Jumbo Loan 5.125% 0 5.258%
5 Year Adjustable Rate - Jumbo Loan 4.625% 0 4.356%
7 Year Adjustable Rate - Jumbo Loan 4.5% 0 4.368%

Mount Diablo Lending Zillow Reviews

We found Mt Diablo through Zillow -- frankly we weren't planning on doing a refi, but when we saw how low the rates were it didn't make sense not to refi. It was very painless -- we gathered the list of documents needed, uploaded to the Mt Diablo website, were approved and it closed quite quickly. Very painless.

05/03/2015 by junk4j, Berkeley, CA 94703

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