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Can someone please provide more information on a 2/28 loan?

by gary170 from Mapleton, Oregon. Feb 23rd 2016 Reply


Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 598 contributions

Sounds like you are asking about a 2 year variable rate that could or could not adjust after the 2nd year based on the current market rate and your adjustment terms in the mortgage agreement, and then is fixed for 28 years.

Feb 23rd 2016
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Justin Murray (JustinMurray)
#103 ranked lender in Illinois - 172 contributions

I haven't seen one of those offered in many years, that was a poplar lending vehicle about 10+ years ago. You do not want one of those - they typically came with a 3 year prepayment penalty. I don't lender offers those anymore and if they do they shouldn't have a pre payment penalty for refinancing or paying off the loan. Justin Murray / JMurray@WintrustMortgage.com/ (312)256-4065

Feb 23rd 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

As others have said, rate is fixed for 2 years then can change every year after. Usually they had prepayment penalties. Not typically available right now.

Feb 23rd 2016
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Ellen Wright (ellenwrightadams)
#49 ranked lender in Oregon - 25 contributions

I agree they are rates fixed for 2 yrs, then go into a variable rate. Gary, I am a mortgage lender in Eugene, right near you. Maybe if I were to guess you are in one. I have not seen these for 10 yrs. call me & we can discuss your options. ellen AdamsStearns Lending541-521-719240515.stearnshomeloans.com/eadams

Feb 23rd 2016
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Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 593 contributions

A 2/28 is a ARM loan (adjustable rate mortgage) the 2 means that the interest rate is fixed for the first two years and the 28 means that it is adjustable.

Feb 26th 2016
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