Leverage Your Home Buying Power With Our “Interest Only" ARM Loans
Are you a first-time home buyer? Interested in a bigger or better home? Or would you like to have lower monthly payments that are fully tax deductible?
Pacific Trust Bank’s 3/1, 5/1 and 7/1 Interest-Only adjustable rate mortgage loans may be the ideal answer for you.
Our Interest-Only ARM loans can minimize your monthly payments or maximize the amount you qualify to borrow. Here's how:
- During the initial fixed rate term of our popular 3/1, 5/1 and 7/1 ARMs, your minimum monthly payment will be interest only*.
- After the three, five or seven year initial fixed interest rate period, your interest rate will adjust annually based on the 1-year CMT index, plus a margin. Your minimum monthly payment will be recalculated on each Change date to fully amortize your outstanding loan balance at the new rate over the remaining term of your 30-year loan.
- Because your initial monthly payments are set to equal only the interest on your loan balance, it will be less than a traditional amortizing loan payment for any given interest rate and loan amount.
- For this same reason, the Interest Only loan amount that you can qualify for will be greater than with a traditional loan, and the full amount of your loan payment may be tax deductible (please consult your tax advisor).
Interest Only for Life Of Loan Also Available
We also offer true Interest Only ARM loans with a 30-year term and interest rates that adjust either semi-annually based on the 11th District Cost of Funds index, or annually based on the 1-year CMT index. Over the life of the loan, the required minimum monthly payment is interest only*. At the end of the 30-year term, a balloon payment is required.
Whether you want to maximize your loan amount or minimize your monthly payments, we can help you reach your goals.
Pacific Trust Bank is here to make loans and to meet your borrowing needs. Our flexible lending philosophy means that, if one of our standard mortgage programs doesn't quite fit your needs and objectives, we'll even custom-tailor one for you that does.
* Total minimum monthly payments may be higher than "interest only" due to property tax and insurance payment requirements.
For general information about interest only and low minimum payment mortgage programs, please see: "Interest-Only Mortgage Payments and Payment-Option ARMs – Are They for You?"
Call us toll-free at (877) 441-BANK, and ask a Pacific Trust Bank loan representative to fully explain how one our Interest Only ARMs, or any of our many other home loan programs, can help you make your home ownership dreams come true.
Pacific Trust Bank is an equal housing lender.
