Initial Fixed rate
Choose the initial rate that best fits with your investment strategy. The PHL ARM combines the features of fixed rate and adjustable rate loans. It starts off with a stable interest rate for several years, after which it converts to an ARM, with the rate being adjusted every year for the remaining life of the loan.
Available Initial Fixed Rate Periods:
The initial fixed rate for an PHL ARM can be as much as 2% lower than the rate for a 30-year fixed!
Adjustable rate mortgages are often referred to as 3/1, 5/1, and so on. The first number is the length of the fixed term – usually 1, 3, 5, 7, or 10 years. The second is the adjustment interval that applies when the fixed term is over. For example, with a 7/1 ARM, you pay a fixed rate of interest for seven years. At the end of that 7-year period, the interest rate will adjust annually up or down according to market conditions.