Caliber Home Loans Inc.
has announced the introduction of a new 5/5 adjustable-rate mortgage (ARM) product to homebuyers, the Caliber 5-Star ARM. The Caliber 5-Star ARM incorporates a lower initial interest rate–the main reason homeowners choose ARMs–with a longer, five-year period between rate adjustments. Unlike other ARM products with annual rate adjustments, Caliber's 5-Star ARM has only one every five years.
Limited rate changes are also built into the Caliber 5-Star ARM. Each five-year adjustment is limited to two percent, but can never increase more than six percent from the initial interest rate. Since rates can also decrease, Caliber 5-Star ARM borrowers may have five years of lower payments.
"We are delighted to offer loans for a wider range of buyers, including Millennials and first-time buyers,” said Caliber's Executive Vice President of Retail Lending John Bianchi. “The Caliber 5/5 ARM is a great solution for homebuyers who don't want to commit to a 30-year fixed-rate loan, but want a lower starter rate. We look forward to continuing to address the unique financing needs of homeowners across the country."