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#2230316 - 02/05/20 07:30 PM 20/15, 25/15 & 30/15 ARM loans
FNB Cathy Offline
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Joined: Aug 2017
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Our bank would like to offer a 20/15, 25/15 & 30/15 loan where the interest rate is fixed for 15 years then changes one time for the remaining
term. Everyone we've talked to says these are ARM loans; however, in our loan platform (Onboard) all ARM programs must have a subsequent rate and payment change date. Is anyone else offering these products? If so, how are you disclosing?

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#2230321 - 02/05/20 07:42 PM Re: 20/15, 25/15 & 30/15 ARM loans FNB Cathy
rlcarey Offline
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rlcarey
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Galveston, TX
How is the rate change determined? And I have never heard of a 20/15, 25/15 & 30/15 loan before.
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#2230534 - 02/07/20 06:36 PM Re: 20/15, 25/15 & 30/15 ARM loans FNB Cathy
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
Randy, based on the following statement I am assuming they are suppose to be 15/20, 15/25 and 15/30 ARMs.

where the interest rate is fixed for 15 years then changes one time for the remaining

I have never seen this product but based on the terms your subsequent payment/rate change would be 20 years, 25 years and 30 years. A 15/20 ARM is saying the rate is fixed for the first 15 years and then changes every 20 years thereafter.

Like Randy asked, how will the rate change be determined and are you truly wanting to offer a 15/20, 15/25 & 15/30 ARM? You may want to do some research for step-rate loans.
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#2230551 - 02/07/20 08:30 PM Re: 20/15, 25/15 & 30/15 ARM loans FNB Cathy
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,911
Galveston, TX
If the rate is adjusting once based on a variable rate at 15 years, then these would be 15/0 ARMs with terms of 20, 25 or 30 years.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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