Overview:
If you would like a little longer to get your budget together before your payments
are subject to adjustment, then this is the program for you. This 30 year loan offers a
fixed interest rate for the first three years and then turns into a 1 Year Adjustable Rate
Mortgage for the remaining 27 years of the loan. This loan has become quite popular in the
last two years and should be considered by all those seeking to minimize monthly payments
while accepting a certain amount of risk.
Is It For You?
This loan is right for you if you wish to maximize the amount of loan you qualify
for and expect to remain in this home for more than 3 years. This loan is generally the
least expensive way to fix your monthly payment for the first three years of your loan.
After that, the loan behaves like a 1 Year ARM with all of its risks and rewards. Do not
take this loan if you are concerned that your income in three years may not cover your
monthly payment after your first adjustment.
Caps
2% yearly / 5% life of loan
Margin
2.75%
Index
1 Year T-Bill |