Loan program

5/6 adjustable-rate

A fixed rate for the first five years, then a rate that can adjust every six months.

Start pre-approval

See illustrative rates

A Middle Eastern man in his thirties works at a tidy desk in a home office at dusk, a laptop with its screen turned away from the camera.

Typical terms

30-year term. The rate is fixed for the first 5 years, then adjusts every 6 months within the limits set out in your loan terms.

Example minimum down payment

10% of the purchase price in this example.

Who it is for

Buyers who expect to sell or refinance within a few years, or whose income is likely to grow, and who are comfortable with a payment that can change.

Pros

The starting rate may be lower than on a 30-year fixed loan. Payments are predictable for the first five years.

Considerations

After the fixed period your payment can rise or fall. Adjustment limits and caps vary by loan, so read them before you decide. Refinancing later is not certain to be possible.

About this program

A 5/6 adjustable-rate loan has a fixed rate for the first five years. After that the rate can change every six months, based on a published index plus a margin set in your loan terms.

The illustrative payment in the planner reflects the starting fixed rate only. It does not show what the payment could become after the first adjustment, so ask your loan officer to walk through the caps and the highest possible payment before you compare it with a fixed loan.

Figures are illustrative only and are not a rate quote or an offer to lend.

Try it with this program

Home price

Down payment

$45,000 down

Term

Illustrative interest rate

For a $405,000 loan, about $2,363 a month in principal and interest.