A 5/1 ARM may be an option whether you're buying your next home or refinancing your current mortgage. We can compare your loan options and help you understand the potential short- and long-term costs so you can decide what fits your plans.
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From your initial fixed rate to what happens after year five, knowing what to expect can help you plan ahead and choose the next step that fits your goals.
No. With a 5/1 ARM, your initial interest rate is fixed for the first five years.
After the initial fixed period, the interest rate can adjust according to index, margin, adjustment schedule, and caps established by your original loan terms.
Yes. If the interest rate increases after your initial five-year fixed period, your principal and interest payment can increase. That's why it's important to understand both the initial savings and the potential future adjustments, as well as to stay in contact with your Home Loan Specialist.
Yes, you have the option to refinance before the initial fixed-rate period ends if you qualify. Whether refinancing makes sense will depend on factors such as available rates, your financial situation, and how long you plan to stay in the home.
Yes. Depending on movements in the applicable index and the terms and limits of your loan, an adjustable rate may increase or decrease after the initial fixed-rate period.
As a responsible lender, Churchill Mortgage is committed to the principles outlined in federal and state lending laws
ensuring all potential borrowers have access to the same information, services, and opportunities
throughout the home loan process.
Churchill Mortgage Corporation, NMLS #1591 is an Equal Housing Lender.
Programs are for select loan types only and are not available in all states or locations.
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