| 7/6 ARM SOFR |
| Initial fixed interest rate for 7 full years; rate adjusts every 6 months thereafter.
Initial lower rate and payment than a fixed loan.
Potentially allows for higher loan amount qualification and enhanced buying power. |
| You want a longer initial fixed period than the 5/6 ARM.
You plan to stay in your home less than 7 years.
You want the stability of a fixed monthly payment for the first 7 years of a loan. |
| The interest rate and payment can increase at the end of the first 7 years. |
| Rate caps = 5% at the first adjustment, 1% every 6 months thereafter
5% lifetime cap
Index = FSBNY 30-Day Avg SOFR
Margin = 3.00%
Non-convertible
Assumable with lender approval |