Q: What is the best mortgage program?
A: The best loan program truly depends on your personal situa-
tion. Your decision depends on your individual needs and various
factors such as: your current financial situation, how your finances
may change in the future, how long you intend to live in your
house, and how comfortable you are with your mortgage payment
The best way to find the 'right' answer is to discuss your finances
and your preferences with a mortgage professional.
ARM (Adjustable Rate Mortgage)
Adjustable Rate Mortgage loans usually begin with an interest rate
that is 2 to 3 percent below a similar fixed rate mortgage. The in-
terest rates are adjusted, typically every year, depending on the
market conditions. An ARM will allow you to qualify for more
F IRSTPLUS MORTGAGE GROUP , LLC
6503 Westwind Way
Crestwood, KY 40014
Phone: (502) 243-0035
Fax: (502) 243-1231
F IRSTPLUS MORTGAGE
GROUP , LLC
money or buy a more expensive home. These loans are also benefi-
cial if you are planning to move in a few years.
There are four standard ARM programs:
6-Month Certificate of Deposit (CD) ARM
A maximum interest rate adjustment of 1% every six months. The 6-
month Certificate of Deposit (CD) index typically reacts quickly to
changes in the market.
1-Year Treasury Spot ARM
A maximum interest rate adjustment of 2% every 12 months. The 1-
Year Treasury Spot index usually reacts slower than the CD index,
but quicker than the Treasury Average index.
6-Month Treasury Average ARM
A maximum interest rate adjustment of 1% every six months. The
Treasury Average index generally reacts more slowly in fluctuating
12-Month Treasury Average ARM
A maximum interest rate adjustment of 2% every 12 months. The
Treasury Average index normally reacts more slowly in fluctuating
There are also mortgages that combine certain features of fixed and
adjustable rate mortgages called hybrid ARM (3/1 ARM, 5/1 ARM, 7/1