A 5 year extendable loan product is similar to a 5/1 ARM in that it has a fixed interest rate for the first 5 years. The difference between an extendable loan and an adjustable rate loan is that an extendable loan has a one time adjustment for the remaining term (in this case 25 years) as opposed to an adjustable rate loan where the rate adjusts once a year for the remaining 25 years. The big benefits of a 5 year extendable loan is that the extremely low interest rate is lower than most mortgage loans and it only adjusts one time should you decide to stay in your loan past the initial 5 year fixed period.

      Much like a 5/1 ARM, the 5 year extendable loan may be a good choice for you if you think it is possible that you may move or refinance in the next five years. A 5 year extendable is also very popular because the extremely low rate allows borrowers to maximize their cash flow to enjoy lower monthly payments and free up extra cash monthly to pay toward eliminating other monthly debts (i.e. credit cards, car payments, student loans, etc.).

Term: 5 years   Maximum Amount: $359,650