3/1 interest-only ARM - A 3/1 interest-only ARM is an adjustable rate mortgage in which none of the payments go toward retiring principal for the first three years.
The loan is fixed for the first 3 years. after the first 3 years the loan then adjust to the current market rate. This can be up or down depending on the curre3nt market.
When the rate adjusts at the end of the third year, the new rate will be fixed for that next year. Then every year after that, the rate will adjust once a year.
There are different types of 100% loans. You can
either get 1 loan for 100% or an "80/20" loan. Speak to your mortgage
professional to see which program is best for you!