Benefits:  Your rate and payment for this loan is generally less than for a fixed rate mortgage. If you anticipate rates to fall in the future, or if you intend to sell or refinance the property within 3 years, this may be a desirable loan to select. This product is also popular with borrowers with less than perfect credit, as it offers a relatively low rate for the first 2 years. You can use this time to rebuild your credit, so you can refinance to a lower rate after the fixed period expires.

To Consider:   If you retain your property and do not refinance this loan before 2 years, you are subject to the adjustable rate. Depending on the interest rate environment at that time, your rate and payment may increase significantly.