Two-Step Mortgage Loans

This 30-year mortgage offers an initial 5-year fixed rate. After this initial period expires, the rate is adjusted once for the remaining 25 years of the loan.

Consider this loan if you expect to remain in the home for at least five years, but consider it a possibility that you could remain much longer. Since there is uncertainty about how much your payment will change after year five, you should only consider this program if you expect to be able to afford your post-adjustment monthly payment. If you are certain that you will be moving or refinancing within five years, you could consider the 5/25 Balloon program, but only if there is a significant monthly savings.

Note: This Loan is not known to be available in a Jumbo program.

7/23-Year Adjustable Rate Mortgage

This 30-year mortgage offers an initial 7-year fixed rate. After this initial period expires, the rate is adjusted once for the remaining 23 years of the loan.

Consider this loan if you expect to remain in the home for at least seven years, but consider it a possibility that you could remain much longer and you are comfortable with the prospect of a future adjustment. If you are certain that you will be moving or refinancing within seven years, you could consider the 7/23 Balloon program, but only if there is a significant monthly savings.

Note: This Loan is not known to be available in a Jumbo program.