1 Year Adjustable Mortgage
30 year amortization
Rate adjusts every year based on 1 year treasury +( 2.75% or 3.25%). Caps are 2% per year and 6% for the term of the loan.
| Loan Range: | $100,000 to $417,000 | ||
| Maximum LTV: | Purchase: 95% | Refinance: 95% | Cash-Out: 80% |
| Program Strengths: | Lowest rate for first year out of available programs. | ||
| Program Drawbacks: | Risky for long term considering rate can increase as much as 6%. | ||
| Recommendations: | Great program for those who are going to be in a home for three years or less, those who plan on making more money over the next few years and those looking to refinance within the next three years. Not a good program if you think rates are going to increase over the next few years. | ||
