Initial Interest ARM Loans
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.
Your first step should be to run the numbers on our web site to compare current rates and closing costs for various ARM loans. Then, use our network of ARM loan lenders and expert mortgage specialists to find the best loan for your property.