Adjustable-Rate Mortgages

FAQ About Adjustable-Rate Mortgages in Oklahoma

• How does an Adjustable-Rate Mortgage (ARM) work?

  You get an initial interest rate that is fixed for a set period, and this rate is typically lower than regular fixed-rate mortgages. Your monthly payments are likely lower in the beginning, too. After that, your rate adjusts with the markets on a schedule of your choosing. 

  • The ARM interest rate resets on a pre-set schedule, typically every 5, 10, or 15 years.
  • Rates change with market shifts, so they may go up or down – along with your monthly payments.
  • Interest rate caps set a limit on how high your interest rate can go.
  • Up to 100% home purchase and 95% cash-out financing are available to our best-qualified borrowers.

  ARMs can be complex, but a WEOKIE Mortgage specialist will work closely with you to be sure you understand all the terms and conditions that can impact your payment now and in the future. 

  We want to ensure that our members have the best opportunity to make informed decisions, and the Mortgage Lending Experts with WEOKIE are always available to guide you through the process.

• Why choose an ARM?

  Buying a house is pricey, even when you’re in an affordable market like OKC. An Adjustable-Rate Mortgage (ARM) can make things a little more reasonable when market interest rates are higher. 

  • Enjoy a lower initial interest rate and lower monthly payment in the beginning period of your loan term.
  • This is ideal for people who plan to sell, move, or refinance in the short term before your rate starts adjusting.
  • It's also a good choice if you know your income will rise in the future.
  • Lower rates may also help you build equity faster because more of your payment is going to your principal.
  • Keep in mind that rates may also go down in the future, not up, so you will save money without needing to refinance your mortgage.

   

• What are the advantages of ARM loan pre-approval?

  With our exclusive Power Buyer program, you get pre-approved, and your low rate is locked in. You can then focus on finding your ideal home without worrying about the financing. 

  • Compete in today's market with a rate lock and fully underwritten pre-approval. 
  • Show you’re ready to buy.
  • Your home buying process will be faster, so you and the sellers can get to the closing table more quickly and easily.

• What is a rate lock?

  From the time your loan is pre-approved until the time you close on your home, rates can go up. With our exclusive Power Buyer program, you can lock in the rate you're offered at pre-approval. 

  Lock N’ Shop keeps you safe from rate hikes while you look for your perfect home.

  • Available for Adjustable-Rate Mortgages and Fixed-Rate Mortgages.
  • Rate locks for 90 days.
  • If rates dip, you have the option to renegotiate.

   

• How can I work out my monthly payment?

  You can use our purchase calculators to see how much monthly payment and purchase price you can afford.

• What is the adjustable-rate mortgage process?

  Our experts are here to guide you through the mortgage process! Luckily, the ARM process is much the same as for a regular 30-year, fixed-rate loan. 

  First, choose your loan type based on:

  • Your income
  • Your down payment
  • How long you're planning to stay in your home. For example, an ARM is great if you're staying in your home for a short time only
  • Whether you want a shorter loan term and higher payment to pay off your loan faster, or a longer loan term and lower payment to make monthly budgeting easier

  Next, apply online and get pre-qualified for your ARM mortgage with a likely starting rate. If approved for pre-qualification, we move to the next steps:

  • We'll process your application, verify all your documents, and request proof of income.
  • We need to order an appraisal of the home and a title search to check for any liens, plus check your flood certification if needed. 
  • When all this is done, we complete the underwriting process to finalize your loan approval.
  • Then we close on your mortgage!

   

• What documents are needed for an adjustable-rate mortgage?

  The documents you need may vary depending on your situation, but here's our handy checklist so you can prepare:

  • Your current residence address, or addresses, for the past two years
  • Social Security numbers for all borrowers
  • Your employment history for the past two years – you'll need your employer(s) name, address, and phone number
  • Income information for all borrowers – you'll be asked to include salary, overtime, bonuses, commissions, interest/dividend, retirement income, and any other regular source of income
  • Details about your rental or home ownership history
  • If you own any other real estate, we'll want to know the address, current market value, amount you owe, amount of rental income you receive (if any), and what your monthly payment is
  • Information about your current debts – we'll ask for the name of the creditor, the account number, the current balance owing and the amount of your monthly payment

  We are here to help you find the right option to fit your needs. Give us a call at 405-235-3030 or apply online today.