Buy big with a jumbo ARM that starts at 2.625%

Model house on top of money

Citibank is offering one of April's best deals on 5-year, adjustable-rate jumbo mortgage in all 50 states.

Borrowers with good credit are being charged an introductory rate of just 2.625% with no points and fees that vary by location, ranging from $1,165 in Los Angeles to $2,176 in New York.

These terms are available for loans starting at $417,000 in most places up to a maximum of $3 million.

The principal and interest payments for the first five years under the introductory rate would be just $404 per month for every $100,000 borrowed.

Can you do better? Click here to compare this deal with the best mortgage rates from scores of other lenders in your area.

You can also use our adjustable-rate mortgage calculator to determine the monthly payment for any amount and any rate.

It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe if you want to pay off the loan.

Citi is the nation's third-largest bank (based on assets) and is headquartered in New York City.

There's a chance you'll find a lender with a lower rate, but it's important to check interest rate caps before you sign up. Some of these loans can jump by as much as five percentage points when they first reset.

The interest rate caps for this Citi jumbo ARM are a more consumer-friendly 2/2/5, which means the interest rate can't go up more than:

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The actual amount of the change is based on interest rates at that time, but it's extremely unlikely that rates will be any lower than they are right now.

In fact, it's almost a guarantee that rates will be perhaps substantially higher when this loan first adjusts in five years.

That means your rate could hit 4.625% at the first adjustment, 6.625% at the second adjustment and max out at 7.625%.

As with most adjustable-rate loans, this mortgage is best suited for borrowers planning to sell, or at least refinance, before the first or second adjustment, depending on where rates are at that time.

In case you can't, it's important to make sure you can still afford the monthly payments if you're stuck with this jumbo loan for more than five years.

To qualify for this loan, you'll need:

You can reach Citibank's mortgage department through its website at

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