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.
If you are looking for the lowest payment possible for the next 64 months than this program can accomplish that.
With rates at 100 basis points lower than a traditional 30 year fixed this program is an attractive option for new home owners or those looking for relief from higher payments.
FHA 5 Year treasury highlights
Payments don't adjust until 64 months have passed
Take advantage of the lower rate to pay down your principal
