SHERMAN OAKS, Calif., May 24, 2011 /PRNewswire/ -- Prospect Mortgage has a 5/1 Adjustable-Rate Jumbo Loan available for qualified buyers. An adjustable-rate mortgage (ARM) is an important home-financing option to consider, particularly for borrowers who anticipate staying in their residence for five years or less. The 5/1 Jumbo ARM allows homebuyers to borrow up to $2 million, based on geographic location, which can be used to refinance an existing home or purchase a new primary or second home. With lower interest rates, borrowers benefit from lower payments. This means greater savings over the life of the loan.
One of the key features of an ARM is that it provides a low mortgage start rate for the first year, which allows borrowers to ease into their mortgage payments. After the fifth year, the loan rate will adjust to a higher rate. While an adjustable-rate loan is a good choice for many homebuyers, anyone considering this type of loan should consult with their Prospect Mortgage Loan Officer to determine if it is right for their unique financial goals.
"In the current market, many people have forgotten about the great benefits of an adjustable-rate mortgage," said Prospect Mortgage President Mark Filler. "It is still extremely relevant to the goals of today's homebuyers. With Jumbo ARM interest rates lower than fixed-rate mortgages, buyers can get more for their money with an ARM loan. In fact, rates just recently dropped even lower on the 5/1 Jumbo ARM, making it more attractive to savvy buyers."
Prospect Mortgage is among the nation's top-10 FHA lenders, top-five Fannie Mae HomePath® retail REO lenders and the second biggest 203K renovation lender in the United States. Headquartered in Sherman Oaks, CA, Prospect Mortgage is one of the largest independent residential retail mortgage lenders in the United States. The company is backed by Chicago-based Sterling Capital Partners, a leading private equity firm with approximately $4 billion of assets under management.
Consumers or real estate agents seeking more information about the 5/1 Jumbo ARM should contact a local Prospect retail office through the "Branch Locator" button on the home page of www.MyProspectMortgage.com.
SOURCE Prospect Mortgage