Posted By: FNB Cathy
20/15, 25/15 & 30/15 ARM loans - 02/05/20 07:30 PM
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?
Posted By: rlcarey
Re: 20/15, 25/15 & 30/15 ARM loans - 02/05/20 07:42 PM
How is the rate change determined? And I have never heard of a 20/15, 25/15 & 30/15 loan before.
Posted By: Dan Persfull
Re: 20/15, 25/15 & 30/15 ARM loans - 02/07/20 06:36 PM
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.
Posted By: rlcarey
Re: 20/15, 25/15 & 30/15 ARM loans - 02/07/20 08:30 PM
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.