Two-Step Mortgage
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A two-step mortgage has one rate for the early years. Then it adjusts once to a new rate for the rest of the term. It changes just one time.
What Two-Step Mortgage means
It sits between a fixed loan and a typical ARM. You get early savings and one predictable change. That means more certainty than a shifting ARM.
Florida example
A Florida buyer takes a two-step to save early. The rate resets once down the road. After that, it holds steady to the end.
What it is
A two-step mortgage has one interest rate for the early years, then a single adjustment to a new rate for the rest of the term. It changes just once.
It sits between a fixed loan and a typical ARM.
Who it fits
A two-step can suit buyers who want early savings and one predictable change. It offers more certainty than a frequently adjusting ARM.
We compare it against fixed and ARM loans. Reach out and we will find your best structure.