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Originally Posted by elpjohnson  I have heard of this, yes.....after the five years does it remain fixed at 5% or does the rate adjust? |
Your loan documents should say what will happen to your loan's rate in clause 3). Mine is a fixed rate loan, and after the five years at 5%, it'll adjust back up to the original rate. If you can't find it on your letter, call the number in the last paragraph of page 2 and ask. The people answering this number seem pretty familiar with the 5% interest only mod.