This is a popular program for borrowers who plan to keep the loan less than three years.
The interest rate is fixed for the first 36 months of the loan's 30 year term. At the end of the 36 months, the interest rate adjusts to the lower of:
Thereafter, the interest rate will adjust every 12 months to the lower of:
In deciding whether to offer a 3/1 ARM tied to the 1-Year T-Bill Index or one tied to the 1-Year LIBOR index, we post to our website the program that is currently offering the lowest rate for the initial 36 month fixed period. Please contact us for the current Index being used.