• Intermediate LIBOR ARM
• Temporary Buydown

Intermediate LIBOR ARM

SunTrust Mortgage offers a wide range of ARM products. Our most popular ARM products include:

• 5/1 ARMs - which have a fixed rate for five years, an adjustment, and then change annually thereafter
• 7/1 ARMs - which have a fixed rate for seven years, an adjustment, and then change annually thereafter
• 10/1 ARMs - which have a fixed rate for ten years, an adjustment, and then change annually thereafter

ARMs can offer the best of both worlds - a lower initial rate than a fixed rate mortgage but also the stability of a fixed rate for a specified period of time.

• Extended timeframe to first adjustment - can be as much as 10 years
• Great for people moving before the initial fixed period is over
• Can prepay loan and lower your monthly payment at rate adjustment dates
• Based on the 12 month LIBOR Index
• Lower initial rate than a fixed rate program

To see examples of monthly payment terms, view our APR Examples.

* The interest rate on Adjustable Rate Mortgages (ARMs) may increase after the initial fixed-rate period

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Temporary Buydown

Many loan programs offered by SunTrust Mortgage permit the use of a temporary interest rate buydown. A temporary buydown occurs when you or someone else (ex. the seller) pays additional money at closing, which is used to reduce the amount of the payments you make early in your loan term.

Here's how it works: you, or perhaps the home seller, will pay a sum to the lender which is equal to the amount of money needed to make up the difference between interest that would be due with a payment at, for instance, 3.5% instead of your actual 5.5% interest rate. The lender will inform the borrower of the exact monthly mortgage payment due during the buydown period. For example, a seller might offer to provide the buyer of his house funding for a "2-1 Buydown". If the interest rate which the borrower agrees to pay on his fixed rate mortgage note at closing is 5.50%, then a 2-1 Buydown means that the borrower will actually make monthly payments for the first 12 months based on a rate 2 points below the "note rate" or at 3.50% in this example. For the following 12 months, payments would be based on 4.5% or 1% below the note rate. At the end of 24 months, the borrower would make payments based on the note rate of interest, or 5.50%, for the remainder of the loan.

SunTrust Mortgage also offers other buydown features. Please see additional information about our ARM Alternative option.

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