Proposed new fixed-rate loans

From Times wire reports

The Department of Housing and Urban Development is proposing short-term mortgage products that would offer fixed interest rates for three to 10 years, and then rise.

On loans with fixed interest-rate periods of three to five years, the rate would not change by more than 1% per year afterward and no more than 5% for the life of the loan.

For loans with fixed-rate periods of seven to 10 years, the rate would not rise more than 2% annually, or 6% for the life of the loan.

The proposal will be published in the Federal Register and be open to public comment for 60 days.