What is a 3 1 ARM mortgage loan?

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A 3/1 ARM, or adjustable-rate mortgage, is a type of 30-year mortgage that has a fixed interest rate for the first three years and an adjustable (or variable) interest rate for the remaining 27.

At what loan to value does PMI insurance begin?

How Long Do You Have to Buy Private Mortgage Insurance (PMI)? Borrowers can request that monthly mortgage insurance payments be eliminated once the loan-to-value ratio drops below 80%. Once the mortgage’s LTV ratio falls to 78%, the lender must automatically cancel PMI as long as you’re current on your mortgage.

How many discount points are required to increase the percentage?

As a rule of thumb, 8 discount points are required to increase the percentage yield by 1-percentage point spread. Therefore 6 points will increase the percentage by 0.75%.