SunTrust Mortgage, Inc. - ARM Alternative


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ARM alternative

If only you could get the low initial interest rate of an Adjustable Rate Mortgage (ARM) but the payment security of a fixed rate loan. At SunTrust, you can!! Our ARM Alternative is a temporary buydown on a fixed rate loan. The difference between a normal temporary buydown and the ARM Alternative is that SunTrust, not the borrower, builder or seller, pays for the additional costs of the buydown. This provides an alternative for borrowers who want the best of both worlds - that low initial rate and the interest rate protection of a fixed rate mortgage. ARM Alternative loans are available with either conventional fixed rate loans, FHA, or VA loans.

Conforming ARM Alternative

It's a fixed rate, not an adjustable
It's a temporary buydown of the permanent, fixed rate
The buydown funds are provided by SunTrust
Three buydown options are available

Option 1: 2% - 1%
Option 2: 1.5% - .75%
Option 3: 1% - .50%

Eligible properties:
- 1-4 unit primary residences
- 1 unit second homes
Eligible transactions:
- Purchase and conventional rate/term refinances
Qualifying rates:
- start rate for primary residences on conventional loans
- note rate for FHA and VA loans and second homes
30 year terms only
Maximum loan amount is the conforming loan limit

An Example Of The SunTrust ARM Alternative Mortgage Plan Compared To Other Mortgage Plans

This example, based on a $100,000 loan for 30 years, demonstrates how the SunTrust ARM Alternative Mortgage Plan's lower qualifying rate allows you to buy more house.

	ARM Alternative	Fixed Rate	1 Year ARM

Qualifying Rate	7.0%	8.5%	7.5%

Note Rate	9.0%	8.5%	5.5%

Qualifying Payment	$665.30	$768.91	$699.22

Income Needed to Qualify For The Mortgage Payment	$28,500	$32,950	$29,950

APR	9.93328%	9.42528%	8.79184%

ARM Alternative Program fills these needs:

Borrower Need	Feature
Low Cash To Close	Can get a 95% Loan-to-value in addition to a lender funded buydown (which lowers your interest rate for a stated period of time).
Home Affordability And Easy Qualification	Qualify at first year rate if the property is a primary residence and the loan is conventional (a lower rate for qualification than most ARMs - meaning you qualify for a higher loan amount)
Payment Security	Interest rate is known over life of loan
Convenience	Apply online now!
Speed	Alt Doc -- easier documentation requirements*

*SunTrust Advantage

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