1 Month Adjustable/Interest-only

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Like the 6 month adjustable, interest-only mortgage, this product is interest-only for the first 10 years of the loan, and then has a fully amortized, interest and principal payment for the following 20 year term of the loan. The interest rate is calculated using an economic index and a margin. The margin is fixed for the entire term of the loan, but the interest rate will change monthly during the interest-only period, according to the index used. Many different economic indexes are used, so it is advised to speak with an Alerio representative specifically about the index tied to your loan. If you choose to make payments toward principal during the interest-only period of the loan, those payments will reflect a reduced interest-only payment the following month.