This is a popular program for borrowers who plan to keep the loan more than three but less than five years.

The interest rate is fixed for the first 60 months of the loan's 30 year term. At the end of the 60 months, the interest rate adjusts to the lower of:

  1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%, or
  2. The initial start rate plus 5%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

  1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%,
  2. The previous rate plus 2%, or
  3. The initial start rate plus 5%.

In deciding whether to offer a 5/1 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 60 month fixed period. Please contact us for the current Index being used.