| Interest Only 5/1 Treasury ARM |
| Description: The loan has a rate that is tied to the monthly average of Treasury securities index with a
constant maturity of one year as published in The Wall Street Journal. It is fixed for the first 5 years, and then converts
to adjustable rate loan, changing every 12 months for remainder of the loan term.
Benefits: The 5-Year interest only ARM allow you to pay a lower interest rate than a traditional 30-year loan. Interest only adjustable rate mortgages are among our most popular loans because they help you qualify for a larger home, maximize cash flow, there is no negative amortization, and your loan may be assumable. To Consider: After the initial 5-year period, the rate will follow the movement of this index up and down, with certain limits. Once the interest-only period ends, monthly payments rise due to two factors: 1. The borrower begins to pay both principal as well as interest, and 2. The payoff period of the loan is shorter. |
| For information about Interest Only 5/1 Treasury ARM loan program, please contact us |
Equal Housing Lender. Some products may not be available in all states. Restrictions apply.
All rights reserved. Pre-qualification is neither pre-approval nor a commitment to lend; you must
submit additional information for review and approval. Approval may be subject to rate increases,
satisfactory title and appraisal review, and no change in financial condition. *Refinancing
or taking out a home equity loan or line of credit may increase the total number of monthly
payments and the total amount paid when comparing to your current situation.