Adjustable-Rate Mortgage

Saving money up front

Key features of adjustable rate mortgages (ARMs)

• It may be easier to qualify for the home of your choice
• You can start out with a much lower interest rate
• Your monthly payments may be lower at first
• The interest rates and payments may be adjusted periodically depending on the program you choose in response to changes in market rates
• The interest rate, commonly referred to as the “fully indexed” rate, is based on an “index” (a published market interest rate) plus a “margin.” The margin is the number of percentage points added to the index.
• When the interest rate changes, your loan payments will change accordingly. Loan payments are subject to the “caps” applicable to your loan, which limit how much your monthly payment can change.

And with the built-in advantages of Downey Savings ARMs, you get the extra assurance of:

• Caps on Rate Increases – Limits on rate increases are built into Downey Savings ARM loans to protect you against excessive increases
• Caps on Payment Increases – Your loan will also have limits on how much your monthly payments can increase
• ARMs with Fixed-Rate Benefits – You benefit from a low initial rate but unlike traditional ARMs, the initial rate is fixed for up to five years*

Adjustable-Rate Products

• Interest-Only Loans
• Affordable Home Loan
• Golden Opportunity

* All rates, pricing, underwriting requirements and other requirements subject to change at any time without notice.