Adjustable Rate Mortgages
2/28 Adjustable Rate Mortgage
This program is a 30-year adjustable program, except that the first
adjustment does not occur until 2 years into the loan. At this point,
adjustments are typically made every 6 months. Ask your lender about
the frequency of adjustments, since some 2/28 loans adjust every year.
This program is primarily offered for consumers with
less-than-perfect credit. The intention of this loan is to allow the
borrower 2 years to improve his or her credit rating, at which point
the borrower may refinance at a better rate.
3/27 Adjustable Rate Mortgage
This program is like the 2/28 Adjustable Rate Mortgage, except that the initial fixed period is 3 years instead of 2 years.
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