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Understanding Adjustable-Rates

The U.S. has always been the world capital of consumer choice. Visitors are often overwhelmed by the variety offered in our stores, supermarkets, and service industries. And the mortgage game is no different.

When making a major purchase like a home or RV, Americans have many different borrowing options at their fingertips, such as a fixed-rate mortgage or an adjustable-rate mortgage.

Almost everywhere else in the world, homebuyers have only one real option, the ARM (which they call a variable-rate mortgage).

What Are Adjustable Rate Mortgages?

An ARM is a loan with an interest rate that is adjusted periodically to reflect the ever-changing market conditions.

Usually, the introductory rate lasts a set period of time and adjusts every year afterward until the loan is paid off. An ARM lasts a total of thirty years, and after the set introductory period, your interest cost and your monthly payment will change.

Of course, no one knows the future, but a fixed can help you prepare for it, no matter how the tides turn. If you use an ARM it is harder to predict what your payments will be.

You can predict a rough range of how much your monthly payments will go up or down based on two factors, the index and the margin. While the margin remains the same for the duration of the loan, the index value varies. An index is a frame of reference interest rate published regularly. It includes indexes like U.S. Treasury T-Bills, the 11th District Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR).

Adjustable-Rates vs. Fixed-Rates

Adjustable rate mortgage calculatorEvery potential homebuyer faces this decision, and there are pros and cons to both kinds of mortgages. What you plan to do both in the near and distant future determines which loan arrangement will be best for you.

The APR of a fixed-rate mortgage (FRM) remains the same for the life of the loan, and most homeowners like the security of locking in a set rate and the ease of a payment schedule that never changes. However, if rates drop dramatically, an FRM would need to be re-financed to take advantage of the shift, and that isn’t easy at all.

An ARM is more of a roller coaster ride that you put your whole house on. It fluctuates with the real estate market and with the economy in general. The sweet five percent deal you have today could shoot up to eight percent if LIBOR goes up.

What Are The Common Reset Points?

The reset point is the date your ARM changes from the introductory rate to the adjustable-rate based on market conditions. Many consumers wrongly believe this honeymoon period of having a preset low monthly payment needs to be as short as it is sweet.

But nowadays, it is not uncommon to set mortgage reset points years down the road. Reset points are typically set between one and five years ahead. Here are examples of the most popular mortgage reset points:

  • 1 Year ARM – Your APR resets every year.
  • 3/1 ARM – Your APR is set for three years, then adjusts for the next 27 years.
  • 5/1 ARM – Your APR is set for five years, then adjusts for the next 25 years.
  • 7/1 ARM – Your APR is set for seven years, then adjusts for the next 23 years.
  • 10/1 ARM – Your APR is set for ten years, then adjusts for the next 20 years.

What is the Difference Between a Standard ARM Loan and Hybrid ARMs?

A hybrid ARM has a honeymoon period where rates are fixed. Typically it is 5 or 7 years, though in some cases it may last either 3 or 10 years.

Some hybrid ARM loans also have less frequent rate resets after the initial grace period. For example a 5/5 ARM would be an ARM loan which used a fixed rate for 5 years in between each adjustment.

A standard ARM loan which is not a hybrid ARM either resets once per year every year throughout the duration of the loan or, in some cases, once every 6 months throughout the duration of the loan.

What do Rates Reset Against?

ARMs are typically tied to one of the following 3 indexes:

  • London Interbank Offered Rate (LIBOR) – The rate international banks charge one another to borrow.
  • 11th District Cost of Funds Index (COFI) – The rate banks in the western U.S. pay depositors.
  • Constant maturity yield of one-year Treasury bills – The U.S. Treasury yield, as tracked by the Federal Reserve Board.

Who Are ARMS Good For?

Adjustable-rate mortgages are not for everyone, but they can look very attractive to people who are either planning to move out of the house in a few years or those who are counting on a significant raise in income in the near future.

Basically, if your reset point is seven years away and you plan to move out of the house before then, you can manage to get out of Dodge before the costlier payment schedule kicks in.

Others who will benefit greatly from the flexibility of an ARM are people who expect a sizeable raise, promotion, or expansion in their careers. They can afford to buy a bigger house right now, and they will have more money to work with in the future when the reset date arrives. When the reset happens if rates haven’t moved up they can refinance into a FRM.

Who Are ARMS Bad For?

ARMs are bad for worrywarts. If life’s little uncertainties make you feel queasy, you may worry about the future of interest rates every waking moment. But don’t worry – you won’t end up losing the farm (or your signed Don Drysdale baseball card) because ARMs have caps on them.

A cap is a ceiling, or a limit on the amount your loan rate can increase annually for the duration of the loan. Adjustable-rate mortgage caps are usually set between two and five percent, and they carry a maximum yearly increase of two percent.

That is not exactly risky proposition, but it can appear so to a non-gambler.

You can run the numbers in advance to estimate the monthly cost at different APRs. Our above calculator does this automatically based on the cap you enter.

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Adjustable rate mortgage calculatorCompare IO ARMs or fixed, adjustable interest-only loans side by side. Adjustable rate mortgage calculator

Avantages And Disadvantages

  • Lower payments and rates early in the loan term, allowing borrowers to buy larger, more expensive homes.
  • ARM holders can take advantage of falling rates without lifting a finger, avoiding the inconvenience and high cost of refinancing, including a new set of closing costs and transaction fees.
  • It’s an affordable way for borrowers with limited funds to buy a house if they don’t plan on living in one place for a long time.
  • Rates and monthly payments can rise dramatically over the course of a 30-year commitment. A six percent ARM can skyrocket to eleven percent in as little as three years.
  • The first adjustment after your initial set period can be more shocking than any sticker you’ve ever seen because annual caps sometimes don’t apply to the first payments after the reset point arrives. Be sure to read the small print!
  • ARMs are complex agreements, and novice borrowers can easily be misled and bamboozled by slick talk about margins, caps, ARM indexes, and other industry jargon – particularly if the lender is somewhat shady.

Borrower Beware

ARMs are not for the faint-hearted. They offer a better life to those who want lower payments now in exchange for spending more down the road. But make no mistake, your monthly payments will likely increase when your rate is adjusted.

You must be prepared financially for the end of the honeymoon. Because caps often don’t apply to the one-time initial adjustment, you could see a worst-case scenario of your six percent rate adjusting to ten or twelve percent a year if interest rates in the overall economy shoot up.

If you found this guide helpful you may want to consider reading our comprehensive guide to adjustable-rate mortgages.

You can also download an ARM loan worksheet bring it to your financial institution. We offer versions in the following formats: PDF, Word Excel.

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A mortgage is a loan secured by a property usually a real estate property. A real estate mortgage usually includes the following key components:

  • Loan Amount the amount borrowed from a lender or bank. The maximum loan amount one can borrow normally correlates with household income or affordability. To estimate an affordable amount, please use our House Affordability Calculator.
  • Down Payment the upfront payment of the purchase, usually in a percentage of the total price. In the US, if the down payment is less than 20% of the total property price, typically, private mortgage insurance (PMI) is required to be purchased until the principal arrives at less than 80% or 78% of the total property price. The PMI rate normally ranges from 0.3%-1.5% (generally around 1%) of the total loan amount, depending on various factors. A general rule-of-thumb is that the higher the down payment, the more favorable the interest rate.
  • Loan Term the agreed upon length of time the loan shall be repaid in full. The most popular lengths are 30 years and 15 years. Normally, the shorter the loan term, the lower the interest rate.
  • Interest Rate the rate of interest charged by a mortgage lender. It can be “fixed” (otherwise known as a fixed-rate mortgage, or FRM), or “adjustable” (otherwise known as an adjustable rate mortgage, or ARM). The calculator above is only usable for fixed rates. For ARMs, interest rates are generally fixed for a period of time, after which they will be periodically “adjusted” based on market indices. ARMs transfer part of the risk to borrowers. Therefore, the initial interest rates are normally 0.5% to 2% lower than FRM with the same loan term. Mortgage interest rates are normally expressed in Annual Percentage Rate (APR), which is sometimes called nominal APR or effective APR. It is the interest rate expressed as a periodic rate multiplied by the number of compounding periods in a year. For example, if a mortgage rate is 6% APR, it means the borrower will have to pay 6% divided by twelve, which comes out to 0.5% in interest every month.

The most common way to repay a mortgage loan is to make monthly, fixed payments to the lender. The payment contains both the principal and the interest. For a typical 30-year loan, the majority of the payments in the first few years cover the interest.

Costs Associated with Mortgages and Home Ownership

Commonly, monthly mortgage payments will consist of the bulk of the financial costs associated with owning a house, but there are other important costs to keep in mind. In some cases, these costs combined can be more than the mortgage payments. Be sure to keep these costs in mind when planning to purchase a home.

Because the recurring costs perpetuate throughout the lives of mortgages (exception being PMI), they are a significant financial factor. Property Taxes, Home Insurance, HOA Fee, and Other Costs increase with time as a byproduct of moderate inflation. There are optional inputs within the calculator for annual percentage increases. Using these wisely can result in more accurate calculations.

  • Property Taxes a tax that property owners pay to governing authorities. In the U.S., property tax is usually managed by municipal or county government. The annual real estate tax in the U.S. varies by location, normally ranging from 1% to 4% of the property value. In some extreme cases, the tax rate can be 10% or higher.
  • Home Insurance an insurance policy that protects the owner from accidents that may happen to the private residence or other real estate properties. Home insurance can also contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off the property. The cost of home insurance varies according to factors such as location, condition of property, and coverage amount. Typically, the annual cost can range from 0.1% to 5% of the property value.
  • Private Mortgage Insurance (PMI) protects the mortgage lender if the borrower is unable to repay. In the U.S. specifically, if the down payment is less than 20% of the property value, the lender will normally require the borrower to purchase PMI until the loan-to-value ratio (LTV) reaches 80% or 78%. PMI price varies according to factors such as down payment, size of the loan, and credit of the borrower. The annual cost typically ranges from 0.3% to 1.5% of the loan amount.
  • HOA Fee a fee that is imposed on the property owner by an organization that maintains and improves property and environment of the neighborhoods that the specific organization covers. Common real estate that requires HOA fees include condominiums, townhomes, and some single-family communities. Annual HOA fees usually amount to less than one percent of the property value.
  • Other Costs includes utilities, home maintenance costs, and anything pertaining to the general upkeep of the property. Many miscellaneous costs can be deceptively high and it is important to consider them in the big picture. It is common to spend 1% or more of the property value on annual maintenance alone.

While these costs aren’t contained within calculations, they are still important to keep in mind.

  • Closing Costs the fees paid at the closing of a real estate transaction. It is not a recurring fee yet it can be expensive. In the U.S., even though not all are applicable, the closing cost on a mortgage can include attorney fee, title service cost, recording fee, survey fee, property transfer tax, brokerage commission, mortgage application fee, points, appraisal fee, inspection fee, home warranty, pre-paid home insurance, pro-rata property taxes, pro-rata homeowner association dues, pro-rata interest, and more. Sellers will share some of these costs. It is not unusual for a buyer to pay $10,000 in total closing costs on a $300,000 transaction.
  • Initial Renovations Some buyers invest money into renovations, features, or updates before moving in. Examples may be changing the flooring, repainting the walls, or even adding a patio.

Besides these, new furniture, new appliances, and moving costs are also common non-recurring costs of a home purchase.

Early Repayment and Extra Payments

For many situations, mortgage borrowers may want to pay off mortgages earlier rather than later, either in whole or in part, for reasons including but not limited to interest savings, home selling, or refinancing. Most mortgage lenders allow borrowers to pay off up to 20% of the loan balance each year but few may have prepayment penalties for one-time payoffs, mainly to prevent refinancing too soon (which will affect the lender’s profit). One-time payoff due to home selling is normally exempt from a prepayment penalty. The penalty amount typically decreases with time until it phases out within 5 years. Few lenders charge prepayment penalties regardless of home-selling or refinancing, but be sure to review the loan terms carefully anyway just in case.

Some borrowers may want to pay off their mortgage loan earlier to reduce interest. Typically, there are three ways to do so. The methods can be used in combination or individually.

  1. Refinance to a loan with a shorter term Normally, interest rates of shorter term mortgage loans are lower. Therefore, borrowers not only repay their loan balances faster, but receive lower and more favorable interest rates on their mortgages. Keep in mind that this imposes higher financial pressure on the borrower due to higher monthly mortgage payments. Also, there may be fees or penalties involved.
  2. Make extra payments the majority of the earliest mortgage payments will be for interest instead of principal on typical long-term mortgage loan. Any extra payments will decrease loan balances, therefore decreasing interest and pay off earlier in the long run. Some people form the habit of paying extra every month, while others pay extra whenever they can. There are optional inputs to include many extra payments, and it can be helpful to compare the results of supplementing mortgages with extra payments and without.
  3. Make biweekly (once every two weeks) payments of half month’s payment instead Since there are 52 weeks each year, this is the equivalent of making 13 months of mortgage repayments a year instead of 12. Utilizing this method, mortgages can be paid off earlier. Displayed in the calculated results are biweekly payments for comparison purposes.

The Calculator has the tools to help evaluate the options. Please be aware that the rates on mortgages tend to be very low compared with other types of loans. Also, mortgage interest is tax-deductible, and home equity accumulated may be counted against borrowers when applying for need-based college aid. Be sure to consider comprehensively before paying off mortgage loans earlier.

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Argyle & Southlake Real Estate & Homes For Sale

Specializing in Argyle and Southlake homes for sale and the Denton County Tarrant County real estate market, you have found your Realtor resource for buying and selling your next property. With real estate expertise for both purchasing and listing properties in Argyle, Southlake, Grapevine, Trophy Club, Denton, Roanoke and all surrounding Denton County Tarrant County, TX areas, you have found the right resource for all of your real estate needs. Whether you are looking for a new home or land, or you are in the preliminary stages of a real estate search, you have found the best in professional service.

Through this real estate web site, you have the ability to search virtually every home for sale in Argyle, Southlake, Grapevine, Trophy Club, Denton, Roanoke and all other local areas. In addition to accessing houses and real estate for sale, this web site features comprehensive community information for Denton County Tarrant County areas that can help guide you in making the right buying or selling decision.

Additional Denton County & Tarrant County real estate, home buying, and home selling tools

This web site features every real estate tool you need when looking at Argyle real estate and homes for sale. You can browse exclusive homes for sale, search virtually all Argyle area listings through my property search, calculate mortgage payments on your next home with my real estate mortgage calculators, access home buying and selling tips, get tremendous area information about greater Tarrant County including specific information for Argyle, Southlake, Grapevine, Trophy Club, Denton and Roanoke. Furthermore, you can find out how much your property is worth, and access comprehensive information about selecting me as your real estate agent. If you are interested in learning about Tarrant County, TX schools, this site also offers thorough school information.

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Balloon Loan Calculator

This tool figures a loan’s monthly and balloon payments, based on the amount borrowed, the loan term and the annual interest rate. Then, once you have calculated the monthly payment, click on the “Create Amortization Schedule” button to create a report you can print out.

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Everything You Need to Know About Balloon Mortgages

A Balloon mortgage is a loan that doesn’t wholly amortize over the life of the home loan, resulting in a balance at the conclusion of the term. Consequently, the final payment is substantially higher than the regular payments. Obviously, the majority of homeowners who choose this type of financing plan on either refinancing prior to the term ending, or selling the property. A balloon mortgage requires monthly payments for a period of 5 or 7 years, followed by the remainder of the balance (the balloon payment). The monthly payments for the time period prior to the balloon’s due date are generally calculated according to a 30 year amortization schedule.

Why a Balloon Loan?

A balloon mortgage is often chosen by individuals who want to have low, fixed monthly payments, with the end goal being to sell the property (often investment properties), at a profit prior to the balloon payment coming due.

What Are 15 Year Balloons Used For?

A 15 year balloon is a form of home loan in which the homeowner makes principal and interest payments for 15 years. Subsequently, at the conclusion of the 15 year term, they are required to pay the amount of money still owed. The 15 year has also become a preferred loan choice for a second mortgage in a piggyback agreement. It’s becoming more and more common for borrowers that put less than 20% down to opt for piggyback options instead of purchasing mortgage insurance. A piggyback can be a first mortgage for 80% of the home’s value and a second mortgage for 5% to 20% of value, depending upon how much the borrower puts down as a payment. In some cases the second mortgage is an adjustable rate; however an increasingly common option is the 15 year balloon.

Paying Off Your Loan Early Vs. Conserving the Money

Property owners who have the available resources to make a partial or full early payment on their balloon amount have the advantage of selecting from a number of different options. Your best option is dependent on your financial goals and any other investment or savings options you have. One of the main variables that determine whether it’s a better idea to pay off the balloon ahead of time is the interest rate on the loan in comparison to the interest that could be earned from investing the money elsewhere until the balloon is due. If the loan carries a higher interest rate, you would save money by paying the balloon off early. It’s important to keep in mind that an early balloon payoff requires that you pay not only the balloon amount, but any principal reduction that would be included in the regular monthly payments that are yet to be paid. One last consideration with investing or paying down your loan would be the tax implications. People in a higher tax bracket have to earn a significantly larger rate of return in the market for the after-tax returns to match the yield on paying off their debt early.

Refinancing a Balloon Mortgage When You’re Underwater

Commercial mortgage calculatorA mortgage debtor with a balloon balance higher than the property value faces challenging problems. Since no other lender will refinance an underwater home, either their current lender will need to refinance it or the homeowner will be pushed to default. In some cases an offer might be presented by the lender to extend the term of the loan for an additional 5 years at the same rate.

If you’re underwater, keep in mind that your current lender is aware that you don’t have any other option but to default, a fact that would inflict a substantial loss on the lender. A considerably better result from their standpoint would be to refinance which would keep your payments coming in and give you an opportunity to pay off your mortgage. In some cases the lender may be willing to modify the terms of your loan as well, relieving your payment problems. Basically, whatever deal emerges, you’ll be able to negotiate and if your lender understands that you see your choices as either defaulting on your mortgage or refinancing at terms you can handle, they’ll more than likely be reasonable.

Advantages Disadvantages


If you’re wondering why a homeowner would decide on a balloon mortgage instead of a fixed or adjustable-rate mortgage, the answer is that balloon mortgage rates come at a discounted APR, making them a more affordable alternative early in the term. An example would be that if you don’t plan on keeping the property (or loan) for more than a few years, a balloon would be a viable option. That being said, there are always associated risks.


The obvious negative aspect is the uncertainty at the conclusion of the loan term. For instance, after 7 years, the existing balance is owed. Just imagine if your property drops in value, leaving you owing more than the remaining balloon payment – you’d have a big problem on your hands if you can’t refinance or execute a short sale. This wouldn’t be the case if you had an ARM or fixed rate loan. ARMs may adjust higher, established by their caps which limit the amount the payments can rise, providing a certain level of protection. Even if you’re underwater on your loan, thanks to the caps, your payments will probably be manageable. Fixed rate home loans have the same payment throughout the life of the loan.

What is a Negative Amortization Balloon Mortgage?

Negative amortization develops when the monthly payment is less than the interest due which causes the loan balance to increase instead of decreasing. ARMs that permit negative amortization could increase the affordability of the home as well as provide lower interest rates, if the interest rates don’t rise consistently. As with just about everything else regarding finance, the benefits come with risks.

In conclusion

The most important thing you should do before you decide on a home loan is to evaluate all of your options and consult with a trusted mortgage broker/lender. You just might be surprised to find that today’s fixed rate loan rates may be better than a ARM or balloon mortgage and without as much risks.

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A Real-Numbers Breakdown of My Actual Mortgage Payment (and Why Online Calculators Can be Misleading),

A Real-Numbers Breakdown of My Actual Mortgage Payment (and Why Online Calculators Can be Misleading)

Any renter with an internet connection and a passion for painting the walls dark green (or black or maybe just wallpapering a bit) can attest to the bit of confusion you feel when first encountering a mortgage calculator or payment estimator online.

You approach the thing with some very rough estimates researched in haste about what a modest little 2-bedroom in an up-and-coming neighborhood might cost. You give a not-totally-inaccurate number of what kind of down payment you might have, but, yeah, it’s inflated just a little bit. (Maybe you’ll get better at saving soon.) You have no idea even what interest rate to enter—you’ve got pretty good credit but haven’t even gotten as far in this very informal home search as to google a little bit about rates—so you use the default one in the calculator. You push the button and find that the number it spits out for your future mortgage payment on your lovely little 2-bedroom condo on the East side of the city is. well, it’s doable. Too doable, you realize. Why isn’t everybody buying a home?

That number an online mortgage calculator will give you is just one piece of the full picture of what it costs, monthly, to buy a home. (This is to say nothing of the other expenses involved, like a down payment and closing costs, plus the ongoing maintenance of being king of your own domain.) The calculator is estimating just your principal and interest payment (“P I”) based on all the factors you punched in—that’s just what you have to pay back to the bank in exchange for them loaning you more money than you’ve ever seen in your life. On top of that there’s possibly mortgage insurance (if you’re making a down payment under 20 percent), and definitely homeowner’s insurance and taxes, which are likely collected in this thing called an escrow account where your lender collects the taxes and premiums from you and pays those bills on your behalf.

What an Actual Mortgage Payment Can Look Like

To show you how much those other expenses can add up on top of what seems like a doable number that the calculator gives you, I thought I’d share my actual mortgage, in very real numbers.

My husband and I bought a 2-bedroom loft in Atlanta last May, our first home after many years of renting both separately and together. A monthly mortgage payment involves lots of little forever-moving parts and pieces, but here is a snapshot of what our 30-year, fixed-rate mortgage payment looks like right now at almost one year in:

Monthly Escrow: $409, includes the below:

Homeowner’s Association Fees: $250 †

Total Payment Each Month: $2192

* We’ll own 20% equity in our home by November 2023, and that’s when PMI (private mortgage insurance) goes away. Until then, this is a necessary monthly expense for us.

This is technically not part of our mortgage payment, as it’s a separate bill that is paid to our loft’s association and not to our lender. But for our specific household budget, we keep this expense in the same bucket as our mortgage. If you’re thinking about the affordability of a condo, you need to factor this in, too.

Principal and Interest

In a fixed-rate mortgage, your P I payment (the figure most mortgage calculators tell you) will never change, although the proportions of it going respectively to paying the principal loan and interest will. Over the past 9 months, an average of $458 of our P I payment has been going to our principal, and $928 to interest. That ratio will consistently move more in our favor over time—though it does take a long time. We’ll be paying our principal loan down by about $500 per month after 3 years of owning our place, and it will take 20 years until we’re paying $1,000 a month towards the original loan.

So, yes, right now only 450-ish dollars of our $2,192 monthly housing expense is money we’re not “throwing away,” to use a phrase often cited by wary renters. That 20-ish percent of our total monthly housing expense is the only part going back into our pockets in the form of home equity. The rest is interest, plus the other taxes, insurance and fees.

Everything Else

The expenses beyond P I vary from place to place and buyer to buyer. Your mortgage insurance payment depends on your credit and the cost of your home, but you can estimate the total to be between 0.3 percent and 1.5 percent, annually, of the original loan amount. Homeowner’s insurance depends on how much you have to insure and how much coverage you need. And your property taxes just depend on where you live.

The parts of our monthly payment beyond principal and interest can (and likely will) go up over time. Maybe not as much as rent does, but still. Your housing costs as a homeowner are hardly a fixed expense.

Are Mortgage Calculators Accurate?

I mean, technically, yes. They’re accurate. They’re calculators. Even in an uncertain world, you can usually trust computers about numbers. But I think that online mortgage calculators can be seriously misleading in the early stages of buying a home.

As a renter, you have one big line item on your budget: rent. Your total housing expense is a round and uncomplicated number, possibly supplemented with a small amount for renter’s insurance and utilities, depending on how you budget. When you become a homeowner, your “mortgage” (in quotes) is the sum of all of kinds of related payments you make to your lender (and maybe your HOA) each month. But the actual mortgage (no quotes) is technically just that principal and interest part, and if you just swap out your rent for the new number on the mortgage calculator in order to figure out if homeownership is possible for you, you’re doing yourself a disservice by ignoring all the other expenses you’ll be on the hook for.

In order to get a better picture of your future as a homeowner, you’ll need to do a little more legwork. Research into property taxes in the area you’re looking to buy (a real estate agent can help with this), get a quote from a homeowner’s insurance company and, if you’re putting less than 20 percent down, use a PMI calculator to estimate what mortgage insurance might cost you.

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Eighty years later, in 1996, the Bank expanded into Central Arkansas with a loan production office and mortgage company subsidiary (Riverside Mortgage Company). In 2004, the Bank continued its growth with the addition of a title insurance company (Little Rock Title Company), and added another mortgage production office in Fayetteville in 2006. Our second retail banking branch was added in Little Rock in 2007.

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  • A loan committee that meets 24/7 to get you lightning fast answers.
  • Efficient overhead that results in high deposit rates for our customers. We are building savings, not sticks and brick branches.
  • Focused on Custom Mortgage Loans that can only be provided by a nimble bank with closely held ownership and few decision makers.

We offer small Hometown banking with Big Bank products and services and state-of-the-art technology.

Mortgage service center

The smaller your bank, the more important you are. Call or drop by any day and see what Riverside Bank can do for you. We promise to take the stiffness out of the boring old banking business and make it as fun and pleasant as possible.

Mortgage service center Mortgage service center


Contact Us

Little Rock
  • 1001 W. Markham Street

Little Rock, AR 72201

  • P: 501-614-6161
  • F: 501-614-6162
  • Toll Free: 855-244-6161
  • M-F: 9am-5pm
  • Sparkman
    • 103 W. Main Street

    Sparkman, Arkansas 71763

  • P: 870-678-2251
  • F: 870-678-2401
  • Toll Free: 888-834-4351
  • M-F: 9am-5pm

  • Adjustable Rate Mortgage (ARM), Quicken Loans, adjustable rate mortgage calculator.#Adjustable #rate #mortgage #calculator

    Adjustable Rate Mortgage

    Adjustable rate mortgage calculator

    With Rocket Mortgage by Quicken Loans, our fast, powerful and completely online way to get a mortgage, you can find out which loan option is right for you.

    Not comfortable starting online? Answer a few questions, and we ll have a Home Loan Expert call you.

    Key Benefits

    Get a mortgage rate as low as 3.50% (4.148% APR) with the 5-year adjustable rate mortgage.

    • Do you want to significantly reduce the cost of your mortgage?
    • Do you plan to move or refinance in the next 5, 7 or 10 years?
    • Do you want the lowest mortgage rate available?

    If you answered yes to any of these questions, an adjustable rate mortgage might be right for you! Whether you choose the 5-year, the 7-year or the 10-year adjustable rate mortgage, you’ll get the lowest rate we offer and save thousands over a traditional fixed-rate mortgage during the initial fixed-rate period. Afterwards, the rate may change once per year.

    Why you should choose Quicken Loans

    • Only Quicken Loans offers you the Closing Cost Cutter and PMI Advantage. Find out how these great options can help guide you to the best decision to meet your financial goals.
    • With more than 32 years of experience, we’ve designed a mortgage process that adapts to your needs.
    • Our powerful online tools, like MyQL Mobile, allow us to close your loan quickly. This app is exclusive to Quicken Loans clients and works with iPhone ® and Android™!

    Other loans you might be interested in:

    How It Works

    Adjustable rate mortgage qualification requirements

    • Refinance up to 95% of your primary home’s value
    • Buy a home with as little as 5% down (primary home)

    Current Interest Rates on Home Loans, Savings, Car loans – CD Rates, interest rates.#Interest #rates

    Today’s Interest Rates and Financial Advice:

    Interest rates

    Financial Advice

    Would you like to buy a home but worry that you’d never qualify for a mortgage? It’s time to stop guessing and evaluate your chances to land a loan based on everything from how much you make to your credit score. Believe it or not, the odds are in your favor.

    November 14th 2017

    The average cost of financing a new or used car or truck has stayed low over the past year, making auto loans a bargain by any historical measure. And buyers with reasonably good credit can always take advantage of the discount loans automakers are offering on many models.

    November 13th 2017

    Lending money to your child is risky business. But if you can avoid the personal pitfalls and convince the federal government that this is really a loan, and not a gift, the Bank of Mom and Dad can be a financial boon for everyone in the family.

    November 13th 2017

    Here’s how to make all of the right decisions so that you’ll save more, invest wisely and take full advantage of all the tax breaks to build your retirement nest egg.

    November 10th 2017

    It’s not enough to find a good location at an affordable price. Condo buyers must consider lots of extra costs, from association fees and special assessments to how well the building is maintained and how strictly it enforces rules on everything from noise to pets.

    November 10th 2017

    You’ve scouted out the best mortgage rate and fought hard to get the best price on your new home. But your bargaining shouldn’t stop there. Here’s how you can save on everything from settlement fees to title insurance.

    November 8th 2017

    Interest rates

    Interest ing Snapshot

    Individual retirement accounts, or IRAs, are a great way to build financial security for you and your family. They’re easy to open and our simple strategy helps you make all the right decisions now, and in the years ahead.

    Interest rates

    Interest rates