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5/25 & 7/23 Balloon/Reset Loans

Loan features:

  • Lower fixed rates for the first 5 or 7 years.
  • At the end of the 5 or 7 years, the loan can be reset at the current market rate for the remaining 23 or 25 years of the term.
  • No prepayment penalty.

Requirements for reset option:

  • You still occupy the property.
  • You are current on your loan payments.
  • No other liens on the property exist.
  • The interest rate offered at the reset date can not be over 5% of the initial interest rate.
  • You request the reset option in writing

If conditions are not met, the loan needs to be completely refinanced at current rates or paid off (balloon payment).

Ideal for borrowers who:

  • Do not expect to be in home more than 5 or 7 years.
  • Are looking for short-term financing.
  • Want a lower rate during that short period of time.
  • Like the lower initial rate.

Contact our Home Loan Center at 206-398-5888 or relending@smcu.com for more information or to start your loan application.

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