COPPELL, Texas, Sept. 20, 2017 /PRNewswire/ -- Caliber Home Loans, Inc. ("Caliber"), the nation's fourth largest non-bank residential mortgage originator, recently introduced a new 5/5 adjustable-rate mortgage (ARM) product to home buyers.
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.
Borrowers who choose the Caliber 5-Star ARM may potentially be able to increase monthly cash flow, as well as possibly enhancing personal money management options. These include paying off credit card debt, contributing to savings accounts, or increasing retirement fund contributions.
Limited rate changes are also built into the Caliber 5-Star ARM. Each five-year adjustment is limited to 2%, but can never increase more than 6% from the initial interest rate. Since rates can also decrease, Caliber 5-Star ARM borrowers may have five years of lower payments.
Caliber's Executive Vice President of Retail Lending, John Bianchi, said: "We are delighted to offer loans for a wider range of buyers, including Millennials and first-time buyers. 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."
To learn more about Caliber's 5-Star ARM, visit www.caliberhomeloans.com.
About Caliber Home Loans, Inc.
Caliber Home Loans, Inc. is a privately-held financial services company with headquarters in Coppell, TX. The company is an approved Seller/Servicer for both Fannie Mae and Freddie Mac, an approved issuer for Ginnie Mae and is an approved servicer for FHA, VA and the USDA. The company carries multiple servicer ratings from Standard & Poor's, Moody's, Fitch and DBRS. To learn more about Caliber, visit www.caliberhomeloans.com.
SVP, Marketing and Corporate Communications
SOURCE Caliber Home Loans, Inc.