Initial Interest ARM Loans
Initial Interest adjustable-rate mortgages offer you new opportunities to power up your origination volume and add more flexibility to your product line.
Initial Interest ARMs allow your borrowers to make only interest payments for an initial interest-only period, freeing income to use toward other financial investments or providing additional tax advantages.
Most popular are 3/1, 5/1, 7/1 and 10/1 Constant Maturity Treasury (CMT)- or London Interbank Offered Rate (LIBOR)-indexed Initial Interest mortgage options. Each includes an interest-only period of 3, 5, 7 or 10 years respectively, then a fully amortizing adjustable-rate period for the remainder of the 30-year term. 3/1, 5/1 and 7/1 CMT and LIBOR-indexed Initial Interest ARMs with 10-year interest-only payment periods are also widely marketed.
Initial Interest ARM's Benefits
Minimize financing costs for the short-term for borrowers who do not plan to stay in the house past the interest-only period.
You can use monthly cash savings toward other financial investments.
You are allowed to make no principal payments during the interest-only period to reduce monthly payments.
Are you curious as to what your 5/1 - 3/1 ARM-based mortgage rate and closing costs might be if you were to refinance or purchase a new home right now? You can run your numbers and get instant on-line estimates here: www.top-lenders.com. No contact information is required.
Find more about 5/1 and 3/1 ARM mortgages >>
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