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Modern Realty of Putnam Inc.
Larissa Ricketts, Broker
881 State Road 20, Suite 3
Interlachen, FL 32148
Phone: 386-684-0930
Email: modernrealty881@gmail.com

Thank you for visiting today. If this is your first visit, take your time and look around. We have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how we can serve all your real estate needs.

Our company serves Putnam County and the surrounding area.  Market is heating and up and listing inventories are down.  You need a good professional agent to help you find the perfect home.  

Our office is Located in Interlachen Florida but we serve all of Putnam County including.... Interlachen, Palatka, Hawhthorne, Melrose, East Palatka, Florahome, Georgetown, Crescent City, Welaka, Satsuma and more.

If you are looking for a waterfront home look no further.  I have fished many of the area lakes and we are very familiar with not only our inland lakes throughout the county but the St. Johns River also.

Looking for investment in Lots or Acreage?  Prices have not been this low in many years so it is a buyer's market.  Look toward the future while prices are down.

We have a wonderful staff of experienced agents to help you.  We treat our buyers and sellers with respect knowing that purchasing or selling is an emotional experience for most people.  The market has changed and we have changed with it.  

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Adjustable Rate Mortgages - The Basics

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:

  1. An index
  2. A margin
  3. Adjustment Period
  4. An interest rate cap
  5. An initial interest rate

The Index

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 Margin

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.

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