Adjustable Rate Mortgages (ARMs)*

  • Jumbo loans at low confirming rates
  • As little as 5% down on purchases and up to 95% LTV on rate/term refinance**
  • Competitive interest rates, with Zero Point and Zero Closing Cost options
  • Interest may be tax deductible (Consult your tax advisor)

Adjustable Rate Mortgages (ARMs) are a great option if you -

  • want to save interest with lower initial rates
  • intend to relocate during the fixed rate period of 3, 5 or 7 years
  • expect your income to increase and want lower fixed rates and monthly payments for several years
  • understand that interest rates and payments will likely increase after the fixed rate period

Here's how ARMs work -

Your loan amount is fixed for an initial term or number of years then it becomes a variable rate loan with the rate adjusting according to the terms of the loan. For example, a 5/1 ARM has a fixed loan payment for the first five years. Beginning on year six, the rate may adjust and may continue to adjust each year thereafter.

We offer fully amortized, 3/1 ARM, 5/1 ARM and 7/1 ARMs


Loan Limits Conforming Fixed $25,000 - $417,000
Jumbo $417,001 - $2,000,000
Maximum Loan to Value 95% to $417,000 (>80% requires Mortgage Insurance)
80% $417,001 - $2,000,000
Property Type Single Family, Condo, or PUD (no Manufactured)
Payments Fixed during initial 3, 5, 7 year period; variable thereafter
Index 1 Year CMT (Treasury Bill)
Floor Rate (Margin) 2.75%
1st Adjustment after initial fixed rate period of 3, 5, or 7 years Up to 2% above or below start rate based on Index + Margin
Subsequent Annual Adjustments Up to 2% above or below 1st adjustment based on Index + Margin
Maximum Rate 6% above start rate
Pre-payment Penalty None


APR = Annual Percentage Rate
*ARM = Adjustable Rate Mortgage
**Payment examples are inclusive of mortgage insurance and are based on a purchase price of $300,000 with 5% down (95% LTV) and a $285,000 loan on a single-family owner-occupied home with a 30 year term. 3/1 ARM has monthly payments of $1,372.57 at 3.336% APR, 5/1 ARM has monthly payments of $1,408.03 at 3.441% APR, 7/1 ARM has monthly payments of 1,468.43 at 3.710% APR. Loans are available for second homes and investment properties in CA at different rates and terms. Rates and terms as of 10/7/2013 based on credit history, subject to credit approval, and subject to change without notice. Some restrictions apply. Loans over 80% LTV require mortgage insurance.