An ARM could be an attractive option if you understand how the loan fits certain situations, such as when interest rates are fluctuating or if you plan to stay in a home for a shorter period of time. You’ll first enjoy an introductory period where your rate is fixed, and then it will adjust with time.
Our 5/5 ARM is a great choice for many homebuyers, new and experienced, with conforming and jumbo options!
We’re here to help you meet your homeownership goals—like buying your first or next home, or consolidating debt or accessing cash by refinancing. We also prioritizes speed for clients, with an average turnaround of only 21 days from application completed to ready to close for purchase loans!1
See how this unique mortgage product helped Tim and Kristen get into their one-of-a-kind home. And find out why realtor Karen Walker Hill loves the 5/5 ARM, recommends it to her clients, and used it to purchase her last two homes.
An ARM is a type of home loan with a variable interest rate. After an initial fixed rate period, rates may adjust over time in line with the housing market and other economic factors resulting in an increase or decrease in the monthly payment amount. This is an attractive option for buyers who aren’t averse to their monthly mortgage payments changing over time because they expect their income and ability to repay to cover any future changes.
The interest rates on ARMs adjust periodically based on economic conditions, allowing borrowers to quickly get into a loan for the home of their dreams. These borrowers may also enjoy lower initial interest rates at the beginning of the mortgage, allowing them to settle into homeownership while preparing for possible changing payments down the line.
Generally, the initial fixed interest rate period lasts between three and ten years. During this time, the loan basically works like any fixed rate mortgage with rates remaining unchanged for the duration of the introductory period, regardless of changes in economic conditions. After the fixed rate period ends, the loan is subject to changing monthly payments on a periodic basis. This is called the adjustable period. In short, if interest rates rise across the board, your payment will go up. If they drop, your monthly payment likely will, too. We should note that there is a maximum your rate can adjust for the life of the loan, as well as at any adjustment period, which is a safeguard in case rates in the market dramatically increase between adjustments. Talk to one of our lending professionals for more details.
The type of ARM you apply for will determine how long the introductory period is and how long the adjustable period lasts. For instance, a 5/1 ARM means that you will pay a fixed rate for the first five years of the loan, and then your rate is subject to change once each year thereafter through the remainder of the loan with limitations.
Greater Nevada Mortgage offers a 5/5 ARM that makes home ownership affordable for more people, especially those just starting out or restarting the mortgage process. The interest rate is fixed for the first five years and adjusts every five years thereafter for the life of the loan, and buyers can pay as little as 10% down payment to get started.
Loan amounts are up to $766,550 for a conforming loan in 2024, and a jumbo loan will be needed for amounts above that.
The interest rate remains fixed for the first five years, and adjusts every five years thereafter through the life of the loan.
Standard loan term is 30 years.
5/5 ARMs are available with as little as 10% down.
Primary residence and vacation/second homes are eligible.
FICO scores as low as 640 and borrowers must also qualify for membership with Greater Nevada Credit Union (which is open to anyone living or working in any of Nevada’s 17 counties, and members of their immediate family).
Got questions about an ARM from Greater Nevada Mortgage? We have answers.
ARMs are best for borrowers who want to maximize their purchasing power while keeping their monthly debt load to a minimum. It is also a good path for those who either believe interest rates will drop over time or those who expect their income to greatly increase over time. Buyers who do not intend to stay in the house beyond the introductory period can also benefit from the flexibility of ARM rates.
Yes. For those seeking out loans that exceed conventional conforming loan limits, we offer jumbo loans on properties up to $1,000,000.
Simply put, a fixed rate mortgage features a single, unchanging interest rate from the beginning to the end of the loan. An adjustable rate mortgage features an introductory rate for a set period of time, followed by rates that can fluctuate on a set schedule until the end of the loan.
From fixed rate loans to variable rate mortgages, Greater Nevada Mortgage offers a variety of types of home loans for every kind of potential homebuyer, including:
According to the National Alliance to End Homelessness, over 7,600 Nevadans experience homelessness on any given night. GNM’s Keys to Greater program donates a portion of the revenue from every new mortgage or refinance to community nonprofit organizations that address homelessness, and since launching in 2021, over $200,000 has been donated!
Ready to get started with an adjustable rate mortgage? Follow these steps with the help of a Greater Nevada Mortgage consultant and you’ll be on your way to home ownership!
It’s quick. It’s easy. It’s online. Plus, we have a mortgage documents checklist so you know what information to gather.
All your home loan questions are answered by your dedicated Mortgage Consultant and their team as you learn about what options work best for your goals.
When you’ve locked in a rate and monthly payment that’s comfortable for you, it’s time to finalize your loan.
1Average purchase loan turnaround time is based on application completion to final approval, with all required conditions and guidelines being met awaiting the Close of Escrow date, for October 2024. This is not a guaranteed timeframe for all loan applications. Each loan transaction is different, and individual turnaround times will vary.
