GCF's Adjustable Rate Mortgages (ARM's) carry an interest rate for a
specified time period and then adjust to current interest rates on a yearly
basis after the initial period with your monthly principal and interest payment
adjusting accordingly. ARM interest rates are usually lower than a fixed rate
mortgage. The interest rate is determined by adding a margin to a current index.
An index is a measurement of the relative cost of funds at any given time. The
initial monthly payment of an ARM are calculated the same way that the monthly
payment of a fixed rate mortgage is calculated, however, the monthly payments
are periodically adjusted.
3/1 ARM - This 30-year loan product offers a fixed rate for the first
three (3) years of the loan and then becomes a 1-year adjustable rate mortgage
for the remaining 27 years of the loan. Please review our program disclosure
which explains the features of this adjustable rate mortgage program in detail.
5/1 ARM - This 30-year loan product offers a fixed rate for the first
five (5) years of the loan and then becomes a 1-year adjustable rate mortgage
for the remaining 25 years of the loan. Please review our program disclosure
which explains the features of this adjustable rate mortgage program in detail.