5 Years of Guaranteed Fixed Rates + Long-Term Rate Protection
There are many reasons a home owner may choose an adjustable rate mortgage (ARM), including a lower start rate and payment as compared to a fixed rate. The True5 ARM offers a safer, more predictable ARM with no annual rate changes, as opposed to a typical 5/1 ARM that allows an annual rate change after the fifth year.
|TRUE 5 ARM||TYPICAL 5/1 ARM|
|Caps||2.0% Per Adjustment
5.0% Life Cap
|2.0% Per Adjustment
5.0% Life Cap
|Initial Fixed Rate Period||First Five Years||First Five Years|
|After Five Years, Rate Change||Every Five Years||Annually|
|Year 6 Potential Rate Adjustment||2.0%||2.0%|
|Years 7-10 Potential Rate Adjustment||0%||2.0%|
|Total Number of Potential Rate
Adjustments in First 10 Years
True5 ARM offers these low down payments2 for conforming and Jumbo loans:
- 3% down to $417,000
- 5% down to $625,500
- 10% down to $850,000
- 20% down to $1,000,000
1 5/1 adjustable may adjust to a maximum of 5.0% over the start rate over the life of the loan. The life cap can be reached in 8 years. It would take 15 years for the True5 to reach the same 5.0% life time cap under a worst case scenario. 2 Down payments shown for one-unit primary residences only.
Not a commitment to lend. Potential rate adjustments are depicted by maximum adjustment caps for each adjustment period. The actual rate will be determined by the index plus the margin as described in the Program Disclosure. Program details subject to change and eligibility subject to qualification.