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5/1 ARM Adjustable Rate Mortgage
MAXIMUM Loan to Value:
purchase: 90%
refinance: 90%
cash out: varies
30 Year Amortization Rate is fixed for five years then adjusts
each year based on the 1 year treasury +2.75% or 3.00%. Caps are 2%
per year and 6% for the term of the loan.
PROGRAM STRENGTHS:
The five year lock in period offers as much security as most borrowers
use (The national average life span of a loan is 4.7 years) and at
a noticeable savings over the 30 year fixed. The 5/1
arm usually has a lower par rate( a rate with 0 points)than the
5/25
balloon and a better rate after the 5th year of the loan.
PROGRAM DRAWBACKS:
Five years fixed may not be enough to give one "peace of mind".
RECOMMENDATIONS:
Great program for borrowers (Jumbo especially) who want added security
of a longer fixed rate term but still want to save money over a 30
year.
Interest Rates
We offer you wholesale
rates that are to low to advertise...
This is
not a joke... We guarantee it.
Please call
and let us prove it to you!
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