More information of Adjustable-Rate Mortgage (ARM)
When you use the online simulator on the Citibank website to calculate what you will pay for your mortgage, both in terms of monthly payments and set-up costs or closing costs, the results offered by the bank include both fixed-rate loans and adjustable-rate ones so that you can choose what suits you best.
In this case we are analyzing mortgages with adjustable interest rates, in which the interest rate is recalculated from time to time according to the evolution of the SOFR reference index, to which a margin is added. As a consequence of this, the monthly paymet will change during the return period, and may go up or down.
In addition, as with most banks in the USA, it is possible to choose a first period with a fixed rate, during which the fee will not vary. Citibank allows you to select from 3 to 10 years with a fixed interest rate.
Previously, Citibank offered a complete simulator on its website so that you could find out the interest rate, commissions and the different conditions of your mortgage loan based on an amount and a term, but currently it is no longer available, although it continues to offer some mortgage calculators, but they do not offer you the data of their products.
Español: Hipoteca con tasa variable