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    • Percent Sign in Circle

      Generally offers lower initial rate than fixed rate products

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      Flexibility to only pay interest during fixed rate period

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      Adjustable rate mortgage with multiple repayment terms

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      After fixed rate period, rate may adjust annually

  • The Ultimate in Flexibility:

    An Interest-only Adjustable Rate Mortgage from FNB can provide a flexible way to finance your new home or refinance your existing mortgage.1,2 Whether you are looking for the flexibility to only pay interest during the fixed rate period or to pay both principal and interest, this type of loan provides you with the ultimate in flexibility. Talk with our mortgage experts to see if this is the right option for you.

    How an Interest-only Adjustable Rate Mortgage Works:

    An Interest-only Adjustable Rate Mortgage is a mortgage in which the interest rate is fixed for a set period of time but then may change, or adjust, thereafter. With this type of mortgage you are only required to pay interest during the fixed rate period, although you may make as many principal payments as you'd like. Like a regular adjustable rate mortgage, the interest rate on these types of mortgages are often tied to an index. As this index rate changes, your mortgage rate may change as well. Unlike a fixed rate mortgage, homeowners with this type of home loan aren’t guaranteed the same interest rate for the duration of their loan.

    Key Features:

    • Flexibility to only pay interest during the fixed rate period or to make principal and interest payments
    • Adjustable rate mortgage with multiple repayment terms
    • After the fixed rate period, all of our adjustable rate mortgages can adjust every year.
    • Because you are only paying interest payments, this type of loan has generally lower initial payments.
    • Available for primary and secondary/vacation homes

    Important Considerations:

    • During the fixed rate period, you are only required to make interest payments.
    • If you opt to make interest payments only, the principal balance of your loan will not go down.
    • After the fixed rate period, your loan will require monthly payments of both principal and interest.
    • After the fixed rate period, your interest rate can go up or down each year.
    • Your mortgage interest may be tax deductible.3

    Great For:

    • Home buyers who anticipate moving or refinancing before the expiration of the fixed rate period
    • Home buyers with variable monthly income or those who expect their income to increase over time
    • Home buyers who anticipate rates may go down after their fixed rate period
  • Applying for an Interest-only Adjustable Rate Mortgage:

    Whether you would like to get pre-qualified or begin the application process, we have convenient ways for you to get started. You can begin by adding this product to your bag. During the checkout process you can select the option to get started online or set up a time to meet with one of our experts.

    Getting Prepared:

    It is helpful if you have the following documents with you during the application process:

    • Fully executed purchase agreement, if available
    • Most recent 30 days of pay stubs
    • Most recent two (2) months of bank statements
    • Prior two (2) years of your W2s
    • Prior two (2) years of tax returns
    • Current driver’s license or photo ID

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Notices & Disclosures

1 - FNB is an Equal Housing Lender; NMLS #766529.
2 - All loan products are subject to underwriting/credit approval. 
3 - Interest may be deductible; check with your tax advisor.

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