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Adjustable Rate Mortgages (ARM)

Adjustable Rate Mortgages (ARM)s are loans whose interest rate can vary during the loan's term. These loans usually have a fixed interest rate for an initial period of time and then can adjust based on current market conditions. The initial rate on an ARM is lower than on a fixed rate mortgage which allows you to afford and hence purchase a more expensive home. Adjustable rate mortgages are usually amortized over a period of 30 years with the initial rate being fixed for anywhere from 1 month to 10 years. All ARM loans have a "margin" plus an "index." Margins on loans typically range from 1.75% to 3.5% depending on the index and the amount financed in relation to the property value. The index is the financial instrument that the ARM loan is tied to such as: 1-Year Treasury Security, LIBOR (London Interbank Offered Rate), Prime, 6-Month Certificate of Deposit (CD) and the 11th District Cost of Funds (COFI).

When the time comes for the ARM to adjust, the margin will be added to the index and typically rounded to the nearest 1/8 of one percent to arrive at the new interest rate. That rate will then be fixed for the next adjustment period. This adjustment can occur every year, but there are factors limiting how much the rates can adjust. These factors are called "caps". Suppose you had a "3/1 ARM" with an initial cap of 2%, a lifetime cap of 6%, and initial interest rate of 6.25%. The highest rate you could have in the fourth year would be 8.25%, and the highest rate you could have during the life of the loan would be 12.25%.

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We've been helping customers afford the home of their dreams for many years and we love what we do.

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1800 Glenarm Place, Suite 101
Denver, CO 80202 
(720) 390-6400
info@sochalending.com

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The Socha Lending Group strives to ensure that its services are accessible to people with disabilities. The Socha Lending Group has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.

Accessibility on The Socha Lending Group website

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Disclaimer

The Socha Lending Group continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.

Despite our efforts to make all pages and content on The Socha Lending Group website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.

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If you are experiencing difficulty with any content on The Socha Lending Group website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.

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If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: mike@sochalending.com

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For information purposes only.  This is not a commitment to lend or extend credit.  Information and/or dates are subject to change without notice.  All loans are subject to credit approval.

Socha Lending, LLC, Headquarters
1800 Glenarm Place, Suite 101
Denver, CO 80202 
(720) 390-6400

Colorado | Oregon | Florida MBR3549 | Texas | District of Columbia MLB1926153

Licensed by the Department of Financial Protection and Innovation, California Finance Lenders Law License # 60DBO-111327

Virginia NMLS ID # MC-7053 (www.nmlsconsumeraccess.org)

Corporate NMLS 1926153 www.nmlsconsumeraccess.org  
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The Socha Lending Group Accessibility Statement

General

The Socha Lending Group strives to ensure that its services are accessible to people with disabilities. The Socha Lending Group has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.

Accessibility on The Socha Lending Group website

The Socha Lending Group makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows sochalending.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).

Enabling the Accessibility Menu

The Socha Lending Group accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.

Disclaimer

The Socha Lending Group continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.

Despite our efforts to make all pages and content on The Socha Lending Group website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.

Here For You

If you are experiencing difficulty with any content on The Socha Lending Group website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.

Contact Us

If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: info@sochalending.com