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5 Year Interest Only ARM

Features & benefits 

  • You make interest-only payments for the first five years. The rate adjusts for the sixth year and you begin to make principal and interest payments. Annual rate increases are limited to 2%. The lifetime increase is limited to 5%.
  • Less money is paid toward your mortgage payment during the first five years so you have more cash in your hand each month. Ideal for people who expect quick increases in income or receive the bulk of their income in bonuses to pay down the principal. This loan is also good for people who plan to move before principal payments begin.
    Payment remains the same for five years - no negative amortization.


If the worst-case scenario occurs and interest rates rise, it could mean a substantial payment increase after the first five years.


When considering any interest-only adjustable-rate mortgage, calculate your monthly payment in the worst-case scenario. If this fits your budget and is an acceptable risk level, the Interest Only ARM may save you money in the long run.

Call us at 1-877-261-2820 for calculated payments.

Mortgage details

Loan purposeLoan
Purchase$0-$548,2500.00%-80.00%No15, 20, 25, 30
Purchase$548,250-$650,0000.00%-80.00%No15, 20, 25, 30
No Cash-Out Refinance$0-$548,2500.00%-80.00%No15, 20, 25, 30
No Cash-Out Refinance$548,250-$650,0000.00%-80.00%No15, 20, 25, 30

Displayed product information is valid for a one unit property only. For information on a property with more than one unit, please call 1-877-261-2820.

Ready to get started on your homebuying journey?