We recommend that you talk with one of our associates who will review the products with you and determine what makes sense for you based on your current situation.
In the meantime, here are the key benefits of the Smart Rate Adjustable Mortgage:
Initial low rate - The Smart Rate Adjustable Mortgage offers an interest rate lower than that of a fixed rate loan. After the initial term, say 5 years, the interest rate adjusts to the Wall Street Journal's Prime Rate minus 1.00% once a year.
Low closing cost options are available. For our low cost option, you pay only $395 - $595. All other closing costs are paid for by Third Federal.
The Rate Relock gives you control to relock your rate for five (or three) more years, anytime throughout the life of your loan! With the Rate Relock, no mortgage application or home appraisal is required. The Rate Relock fee is based on the state where the property is located and ranges from $395 - $595.
There is no prepayment penalty - principal and interest can be paid off early with no additional costs. You may be able to borrow up to 85% of your home's value without paying Private Mortgage Insurance (PMI), depending on your loan amount, credit history and your home's location.
Jumbo loans - Smart Rate Adjustable Mortgages up to $2,000,000.
The rate is indexed to Prime - an objective and easily obtainable index from an outside source (The Wall Street Journal), minus 1.00%.