5 Year Interest Only Adjustable Rate Mortgages

Looking for the low monthly payment made available by the introductory rate of a 5/1 interest only ARM? Contact the various lenders and brokers listed in the survey at the top of this page to inquire about their current rates and interest only loan product offerings. Please note that 5/1 ARM interest only mortgage rates are not published as the company that conducts the survey (SureHits) limits the number of products in their rate tables. Therefore, it is up to the consumer to do a little more research (sorry).

What is a 5/1 IO ARM Loan?

5 year interest only loans will vary by lender so you will want to verify any of the information below to make sure that it applies to the mortgage that you are interested in obtaining.

Here is a very basic overview of how some 5year interest only loans work (see note above):

• Loans are usually 30 year amortizing mortgages where rates are set for the first five years of the loans and then will begin to adjust after those first 60 months pass. Be sure to spend some time reviewing the Adjustable Rate Handbook available from your lender and/or broker and pay attention to the mortgage's margin, caps, and the index it is tied too.
• Interest only period is for the first 5 years as and then principal payments must be made. Consumers need to be aware that the remaining principal balance must be paid off during the last 25 years of the loan which will make one's monthly payment increase.

5/1 interest only mortgages are not available in every state. Be sure to check with a mortgage professional to see if a 5 year IO loan is an option in your state. Adjustable rate loans and interest only loans carry an elevated level of risk when compared to fully amortizing fixed rate products. Consumers should be well versed in the pros and cons of these products before moving forward.

Additional Companies to Request 5 Year Interest Only Loan Information From:

American Financial Resources, is a mortgage lender that provides home loans throughout much of the United States. To learn more about their 5 year IO ARM options, please call 800-316-9508.

Gateway Bank Mortgage is a mortgage bank that serves much of the Southeastern seaboard from Maryland down the coast to Florida. If you are looking for mortgage rates in NC, FL, GA, SC, VA or MD give them a call at 877-728-3569.

Thank you for researching home loan programs, interest rates and mortgage brokers and lenders at BurlingtonMortgage.biz. If you are a mortgage professional and would like to be featured on this site, please call 910-547-6910 for more information.

Interest Only Mortgage Programs to Explore :
30 year IO Loans
10 year IO ARM
7 year IO ARM
5 year IO ARM
3 year IO ARM