Buying a home means balancing what works for your budget today with what may change tomorrow. FlexLock gives you another option: a lower rate to start, and a no-cost opportunity to revisit your financing later.
FlexLock is a modern-day adjustable-rate mortgage program from Universal Lending Corporation. The interest rate remains fixed for the first five or seven years, which may provide a lower initial rate and payment than a traditional 30-year fixed-rate mortgage.
Modern-day matters here. FlexLock is fully documented and fully underwritten, with rate caps that limit how much the rate can change, all disclosed in writing before you commit.
A lower rate to start is only half of it. Eligible homeowners also have a no-cost opportunity to refinance after making six monthly mortgage payments, subject to qualification and program terms.
That means you are not locked into one decision for thirty years. If your needs change, or if rates move, you have a defined way to revisit your financing well before your initial period ends.
FlexLock is offered with a five-year or seven-year initial period. On the five-year option, the rate is fixed for five years and may then adjust once a year. On the seven-year option, the rate is fixed for seven years and may then adjust every six months. There are limits on how much the rate can change, and your loan advisor will show you those limits in writing before you commit.
FlexLock is an adjustable-rate mortgage, not a 30-year fixed-rate loan. After the initial period ends, your rate may adjust and your payment may increase. Before that happens, eligible homeowners have a no-cost opportunity to refinance.
FlexLock tends to make sense for buyers who are weighing more than one way to finance a home and want to see the alternatives before committing. That often includes buyers who:
It may make less sense for buyers who plan to stay in the same loan for decades and want payment certainty above everything else. That is a real trade-off, and your loan advisor can talk it through with you.
What is FlexLock?
FlexLock is a modern-day adjustable-rate mortgage. Your rate is fixed for the first five or seven years, and before it adjusts you have a no-cost opportunity to refinance.
What makes it a modern-day ARM?
Adjustable-rate mortgages today are underwritten differently than the ones many people remember. FlexLock requires full documentation and full qualification, it cannot negatively amortize, and it carries caps that limit how much the rate can change at each adjustment and over the life of the loan. Your loan advisor will show you those caps in writing.
When can I use the no-cost refinance?
Eligible homeowners can refinance after making six monthly mortgage payments.
Is the refinance guaranteed?
No. It is an opportunity for eligible homeowners, subject to program terms and qualifying at the time of refinance. Your loan advisor can explain what qualifying involves.
What if I do not qualify to refinance later?
You keep your loan and the same choices any homeowner has: refinance elsewhere, sell, or stay with the adjusted rate. Your loan advisor can walk through what affects qualifying.
Is my rate really fixed?
Yes, for the initial period that applies to your loan. During those first five or seven years your rate does not change, and neither does your principal and interest payment.
What does 5/1 mean?
The first number is how many years your rate stays fixed. The second is how often it can adjust after that. A 5/1 is fixed for five years, then may adjust once a year. The seven-year option is a 7/6, which is fixed for seven years and may then adjust every six months.
What happens after the initial period?
FlexLock becomes adjustable. Your rate can move with the market on a set schedule, within limits your loan advisor will show you in writing before you commit.
How much could my payment go up?
There are limits on how much your rate can change at each adjustment and over the life of the loan. Your loan advisor can show you the worst-case number in writing, and it is worth seeing before you decide anything.
What if rates are higher when my rate adjusts?
That is a fair question, and it is exactly why it is worth seeing FlexLock side by side with a 30-year fixed-rate mortgage before you decide.
Do I have to use Universal Lending Corporation?
You are free to use any lender you choose. FlexLock is a Universal Lending Corporation program, so ask your loan advisor which parts of it apply if you finance elsewhere.
A Universal Lending Corporation loan advisor can compare FlexLock side by side with a 30-year fixed-rate mortgage, explain which initial period applies and how future adjustments work, and help you decide which structure fits your plans.
Universal Lending Corporation, NMLS ID 2996, www.nmlsconsumeraccess.com, 6430 S. Fiddlers Green Cir., Ste 460, Greenwood Village, CO 80111, 303-758-4969, www.ulc.com. Licensed in: AZ – Mortgage Banker License #0927881; CA – Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act – License #41DBO-193853 and under the California Finance Lender Law License #60-DBO-214726; CO – Mortgage Company Registration; FL – Mortgage Lender Servicer License #MLD989; Georgia Residential Mortgage Lender License #2996; OR – Mortgage Lending License #2996; TX – Mortgage Banker Registration; WA – Consumer Loan Company License #CL-2996. This is not a commitment to lend. 2026.
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