Interest Only

An interest-only, 3/1 ARM (adjustable rate mortgage) allows borrowers an interest-only period for the first 36 months of the loan. The interest rate is calculated using a margin (which remains fixed for the loan), and an economic index. Many types of indexes are used for different types of loans, so it is wise to discuss the reliability and stability of the index tied to your loan with an Alerio representative. After the 36 months, the interest rate and monthly payment will adjust annually based on the economic index tied to the loan. A 3/1 interest-only ARM can be a great option for debt consolidation because it dramatically lowers monthly payments during the interest-only period. This can help you improve your credit profile and save you money in high interest payments over time. This type of mortgage is available as a rewards program to borrowers with above average credit. Call and speak to an Alerio representative about a 3/1 interest-only ARM, or other interest-only ARM products that may be available to you.