Hawaii and California Adjustable Rate Mortgage (ARM)

Pacific Home Loans offers conventional, government, and alternative document adjustable rate mortgage programs (ARMs) throughout Hawaii and California.

Conventional ARM
Fannie Mae
Freddie Mac

Government ARM

Alternative Document
Self-Employed Bank Statement Loan

Some of the benefits of an Adjustable Rate Mortgage (ARM):

Initial Fixed Rate

Choose the initial rate that best fits with your investment strategy. The PHL ARM combines the features of fixed rate and adjustable rate loans. It starts off with a stable interest rate for several years, after which it converts to an ARM, with the rate being adjusted every year for the remaining life of the loan.

Available Initial Fixed Rate Periods

  • 3/1 ARM
  • 5/1 ARM
  • 7/1 ARM
  • 10/1 ARM

The initial fixed rate for a PHL ARM can be as much as 2% lower than the rate for a 30-year fixed!

Adjustment Periods

Adjustable rate mortgages are often referred to as 3/1, 5/1, and so on. The first number is the length of the fixed term – usually 1, 3, 5, 7, or 10 years. The second is the adjustment interval that applies when the fixed term is over. For example, with a 7/1 ARM, you pay a fixed rate of interest for seven years. At the end of that 7-year period, the interest rate will adjust annually up or down according to market conditions.

You should consider an ARM if you:

  • Are planning to be in your home for less than ten years.
  • Want the lowest interest rate possible and are willing to tolerate some risk to achieve it.
  • Would like the peace of mind that comes with a consistent monthly payment for three or more years, with an interest rate that’s only slightly higher than anannually adjusted ARM.
  • Are planning to sell your home or refinance shortly after the fixed term is over.