• Hawaii Adjustable Rate Mortgage (ARM)

    Pacific Home Loans offers the following conventional, government, and alternative document Hawaii adjustable rate mortgage programs:

    Conventional Fixed Rate
    Fannie Mae
    Freddie Mac
    Government Fixed Rate

    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 an
    annually adjusted ARM

    are planning to sell your home or refinance shortly after the fixed term is over.