National Mortgage cuts 5-year ARM rate
National Mortgage Alliance is offering one of the best nationally available deals on five-year, adjustable-rate mortgages.
As of June 4, the online lender based in Atlanta is charging just 3.5%, with no points and $1,300 in fees.
That's almost a quarter of a percentage point lower than the national average for five-year ARMs.
The offer is widely avaialable, with National Mortgage licensed in all 50 states.
The principal and interest payments for the first five years would be $449 a month for every $100,000 you borrowed.
Some lenders offer ARMs with lower rates. But check their interest rate caps before you sign up.
The rates on some bargain-basement loans can go up as much as five percentage points when they reset for the first time.
This National Mortgage Alliance ARM won't do that.
Its interest rate caps are 2/2/6, which means it can't go up more than two percentage points the first time it adjusts in five years, or two percentage points each year after, and can never go up more than six percentage points.
Of course, this kind of loan makes the most sense if you plan to sell the home before the mortgage resets.
But just in case you don't, choose an ARM you can still afford after five years when the rates adjust.
Interest rates at historic lows, and you have to assume they'll be higher a few years from now.
To qualify for this loan, you need a credit score of 700 or higher. You must also be applying for a conforming loan -- one for less than $417,000 to $729,500, depending on where you live.
Click here to compare this deal with the best mortgage rates from scores of other lenders in your area.
Use our mortgage calculator to calculate the monthly payments for the specific amount you'd like to borrow.
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