5/1 FLEX LOANS
Our 5/1 FLEX LOAN RATES & TERMS:
Property Types
Single family, condos, townhomes, 2-4 units
Loan Amounts
$75,000 – $970,800
Term
5 to 7 years fixed
A 5/1 hybrid adjustable-rate mortgage (5/1 ARM) begins with an initial five-year fixed interest rate period, followed by a rate that adjusts annually. The “5” in the term refers to the number of years with a fixed rate, and the “1” refers to how often the rate adjusts after that (once per year). As such, monthly payments can go up—sometimes dramatically—after five years. Financing a property with bank statement loans is a quick and straightforward process for an experienced lender like American Heritage Lending.
5/1 FLEX FINANCING
Also known as a five-year fixed-period ARM or a five-year ARM, this mortgage features an interest rate that adjusts according to an index plus a margin. Hybrid ARMs are very popular as they feature an initial interest rate significantly lower than a traditional fixed-rate mortgage.
5/1 Flex loans offer a flexible lending option to help consumers meet their unique financing goals including lower introductory rates than traditional fixed-interest mortgages. These types of mortgages are ideal for buyers who will live in their homes for short periods of time.
American Heritage Lending helps its clients qualify for loans without the traditional income qualification standards.
WHY CHOOSE A 5/1 FLEX LOAN?
Many buyers will likely have difficulty getting loans through a traditional lender like a bank or credit union. With American Heritage Lending, we offer you a variety of financing solutions to fit your needs.
We understand the need to move quickly when opportunities arise. Our application, appraisal, and approval process can be accomplished in just a few days to ensure you can negotiate effectively with the property holder.
USE OUR 5/1 FLEX LOANS FOR THE LOWEST MONTHLY PAYMENT
A 5/1 hybrid ARM could be a good choice for homebuyers who don’t plan to stay in the home long term or who are confident in their ability to refinance to a new loan before the rate adjusts. If interest rates remain low and adjustments to the index rate are relatively minor, then a 5/1 hybrid ARM could save you more money over time than a fixed-rate mortgage.
A borrower can save a significant sum on their monthly payments with a 5/1 hybrid ARM. Assuming a home purchase price of $300,000 with a 20% down payment ($60,000), a borrower with excellent/excellent credit can save 50 to 150 basis points on a loan and more than $100 per month in payments on their $240,000 loan. Of course, that rate could rise, so borrowers should anticipate a rise in their monthly payment, be prepared to sell their home when their rate goes up, or be ready to refinance.