Bank of America Net 5 Mortgage Rate 4.551% APY

Bank of America is offering their "Net 5" (5/1 interest only payment) adjustable rate mortgage (ARM) which currently has an annual percentage rate of around 4.50%.

We were quoted this rate for a conforming loan, in the state of California, with an excellent credit rating. Mortgage rates will vary slightly depending on the dollar amount, your credit score and the state you live in.

These days, most people would shy away from an ARM that has an interest only payment, in fact some banks don't even offer that type of mortgage product right now.

Interest only ARM's are designed for people who expect to increase their income over the course of the loan, since the initial payments are lower this enables one to borrow more than he or she would have been able to afford. When their income increases they are able to afford the higher mortgage payments.

Interest only adjustable rate mortgages are also a good tool for investors, it allows them to generate more cashflow because the mortgage payments are lower.

Be sure to do your research when obtaining a mortgage refinancing a mortgage.

We were also quoted these mortgage rates from Bank of America based on the criteria listed above.