Tell Me About Adjustable Rate Mortgages
Many people choose Adjustable Rate Mortgages* (ARMs) to realize short term savings. An ARM offers a low, fixed introductory rate. This rate may adjust annually following the fixed rate period. Although ARMs are not without risk, if you don't plan to own the home for longer than the fixed rate period, this may be the option for you.
Adjustable Rate Mortgages are ideal when:
- You do not plan to own the home for longer than the fixed rate period.
- You are looking for the lowest possible payment during the fixed rate period.
- You are comfortable having an interest rate and payment that may increase based on market conditions.
3 year ARM
The initial interest rate for this ARM is fixed for the first three years and adjusts annually thereafter for the remainder of the life of the loan.
5 year ARM
The initial interest rate for this ARM is fixed for the first five years and adjusts annually thereafter for the remainder of the life of the loan.
7 year ARM
The initial interest rate for this ARM is fixed for the first seven years and adjusts annually thereafter for the remainder of the life of the loan.
More Adjustable Rate Options
Interest Only ARM's
You are only required to pay interest for the first 10 years regardless of the initial fixed rate term.
10 year ARM
The initial interest rate for this ARM is fixed for the first ten years and adjusts annually thereafter for the remainder of the life of the loan.
1 year ARM
The initial interest rate for this ARM is fixed for the first year and adjusts annually thereafter for the remainder of the life of the loan.
*Interest is fixed for a set period of time, and adjusts periodically thereafter. At the end of the fixed rate period, the interest and monthly payments may increase.
