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The very best Realtor I have ever worked with and a very nice person.....!!!!!Buyer
"We were relocating from Pennsylvania to Dallas and had a very short window in which to find a house. We selected online the houses we wanted to see prior to our arrival and Shawn arranged and mapped out three days worth of houses to view. By the time we left we had a house. While still in Pittsburgh Shawn helped us finalize our closing from a far and assisted us with finding numbers to utility companies and or anything we needed. We have moved every year for the past 5 years and this by far was the best experience yet!"
"Edna was a wonderful agent for us as we were first time home buyers and we wanted to build a house. Edna helped us navigate the world of new home builders and made sure we got more than a fair deal when she negotiated with them for a price and upgrades. Edna was willing to meet us and spend the time to explain all the terms of the paper work before we signed anything. She gave us helpful insights and suggestions to aid us in building a home we would be satisfied with. I would recommend her to anyone. We will use her again." - Mikayla Sjolin
"Our agent was wonderful." - Steve And Nikki Ormsby
"Totally committed, competent and great to work with. She goes beyond what is required." - Buyer, Waxahachie
"She was very professional in every aspect, very informative always no matter what we called her about. She never complained one time about the many questions we had and went out of her way more than once to make sure we were satisfied. I would highly recommended her. She knows her business and does very well at it." - Buyer, Fort Worth
"Shawn Ramsey was my agent on this investment property and I had the pleasure to meet with his partner and mother, Edna Ramsey. It is obvious that the two of them make a great team and are very knowledgeable of the investment market. I look forward to working with both of them with my next projects." - Buyer, Arlington
An adjustable rate mortgage (ARM) has an interest rate that fluctuates periodically. This is in contrast to a fixed rate mortgage, which always has the same interest rate.
Every ARM has basic components:
An interest rate cap
An initial interest rate
An ARM’s interest rate is tied to one of many economic indices, some examples of which are the 1-year constant maturity Treasury security, the Cost of Funds Index, or the London Interbank Offered Rate. Different indices move at different rates so know the characteristics of the index used for your ARM.
The interest rate for your ARM will be calculated by adding a margin to the interest rate from the index. The margin is basically the markup charged by the lender that allows them to make a profit off of your loan, such as adding 2% to the index, where the 2% is the margin. The margin of your loan usually does not fluctuate.
The Adjustment Period
The Adjustment Period controls when and how often your interest rate changes. For example, if your ARM has an adjustment period of 1 year, your interest rate will be subject to change at the end of each year and your monthly mortgage payment will be recalculated to reflect this change.
The Interest Rate Cap
Interest rate caps are built into the loan to protect the borrower from drastic interest rate fluctuations. The caps limit how much the interest rate or monthly payment can change at the end of each adjustment period. An ARM can also have a cap for the life of the loan. For example, during the life of a loan, the interest rate can only be increased by 5%.
The Initial Interest Rate
The Initial Interest Rate is the interest rate that you start with at the beginning of your loan period. The length of time your loan stays at this rate is built into the loan. For example, you may stay at the initial interest rate for 1 year, 5 years, or another length of time depending on your specific mortgage. This type of ARM is generally referred to as a Hybrid ARM. The initial interest rate for an adjustable rate mortgage is generally lower than that of a fixed rate mortgage.