Portfolio 3/1 and 5/1 LIBOR
ARMs
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Jumbo
Loan Amounts
Conforming
Loan Amounts
Portfolio
ARM Matrix
Our 3-Year and 5-Year ARMs offer your clients the advantage
of a fixed rate loan with a lower rate for an intermediate
period of time. This can be particularly attractive
to the borrower who plans to remain in the home for
a limited time. These loans begin at a lower interest
rate, which is fixed for 3 or 5 years and is then adjusted
annually based on the 1-year LIBOR index and a 2.75%
margin. The client benefits from a lower interest rate
than a fixed rate loan. In addition, both the 3-Year
and 5-Year ARMs offer your clients an interest only
payment feature.
The 3 and 5-Year ARMs are recommended
for borrowers who:
| • |
Plan to own their
home 3-5 years. |
| • |
May be uncomfortable with a shorter
term ARM; yet want the benefits of a lower rate
for an intermediary period of time. |
|
Portfolio
3/1 and 5/1 LIBOR ARMs
