• Interest rate & monthly payment remain the same for the entire term of the loan

• plan to live in property more than 10 years
• like total payment stability

• Interest rate & monthly payment remain the same for 10 years
  
  
• Starting the 11th year, interest rate adjusted every year, so payment is subject to change every year for remainder of loan

• plan to live in property more than 10 years
• like initial payment stability, can accept later changes

OR

• plan to move within 10 years
• want loan to remain in force in case plans change

• Interest rate & monthly payment remain the same for 7 years
  
  
• Conversion option: On the 8th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan

• plan to live in property more than 10 years
• can tolerate one payment adjustment

OR

• plan to move within 7 years
• want to remain in force in case plans change

• Interest rate & monthly payment remain the same for 7 years
• Starting the 8th year, interest rate adjusted every year, so payment is subject to change every year for remainder of the loan

• plan to live in property more than 7 years
• like initial payment stability, can accept later changes

OR

• plan to move within 7 years
• want loan to remain in force in case plans change

• Interest rate & monthly payment remain the same for 7 years
• At the end of 7 years, loan is due in full.
• Borrower must refinance into new loan at prevailing interest rates

• plan to live in property more than 7 years
• are willing to refinance at prevailing market rates

OR

• plan to move within 7 years
• like payment stability

• Interest rate & monthly payment remain the same for 5 years
• Conversion option: On the 6th year, interest rate adjusted to reflect prevailing interest rates, resulting payment will remain the same for remainder of loan

• plan to live in property more than 5 years
• can tolerate one payment adjustment

OR

• plan to move within 5 years
• want loan to remain in force in case of plans change

• Interest rate & monthly payment remain the same for 5 years
• Starting the 6th year, interest rate adjusted
  every 5 years (for 5/5 ARM) and
  every year (for 5/1 ARM)

• plan to live in property more than 5 years
• like initial payment stability, can accept later changes

OR

• plan to move within 5 years
• want loan to remain in force in case plans change

• Interest rate & monthly payment remain the same for 5 years
• At the end of 5 years, loan is due in full.
• Borrower must refinance into new loan at prevailing interest rates

• plan to live in property more than 5 years
• are willing to refinance at prevailing market rates

OR

• plan to move within 5 years
• like payment stability

• Interest rate & monthly payment remain the same for 3 years
• Starting 4th year, interest rate adjusted
  every 3 years (for 3/3 ARM) and
  every year (for 3/1 ARM)

• plan to live in property more than 3 years
• like initial payment stability, can accept later changes
• OR
• plan to move within 3 years
• want loan to remain in force in case plans change

• Interest rate adjusted every year, so monthly payment is subject to change every year for entire 30 year loan term

• want to take advantage of lowest rate possible
• are willing to accept yearly payment changes

OR

• cannot qualify at higher rate programs