A 3 year treasury arm is a fixed rate for the first 40 months of the loan. Interest rates on this program can be up to 20% lower than comparable 30 year loans.
Its a great loan if your priority is to reduce your payment as much as possible. Its is also a great way to build equity the first 3 years of owning a home. You can just pay an amount closer to a comparable 30 year fixed and you will see the balance drop down.
