What is an Adjustable Rate Mortgage (ARM)?

If starting out with a lower monthly payment is important to you, then you may wish to consider an Adjustable Rate Mortgage (ARM). An ARM loan typically offers you an attractive interest rate for the first several years of your loan, then it adjusts annually for the remainder of your mortgage term.

Key Benefits

  • Enjoy an affordable monthly payment, lower than a fixed-rate mortgage.
  • Save money on interest payments if you plan to move or refinance within a few years.
  • An interest rate cap limits the amount by which your monthly payment can increase, at each ARM rate adjustment and over the life of the loan.

Useful Links & Documents

 
 
 
 

Adjustable Rate Mortgage (ARM) Features

Affordable

Interest payments during the early years of your ARM loan will be generally lower than those of a fixed rate mortgage.

Changeable

Your initial interest rate will remain the same for a period of 5, 7 or 10 years, depending on the mortgage you choose, and then adjust annually, based upon current interest rates.

Protection

There's a limit to how high your monthly interest payment may go when your ARM loan rate adjusts, and over the life of the loan. Or you can refinance into a fixed rate mortgage if you prefer to lock in a rate.

First Time Home Buyer?

For first-time homebuyers, we can assist you in the process from getting you pre-approved to selecting the right loan option and getting you into your new home.

 

  • Avoid rent while creating a home that meets your needs and tastes.
  • Gain tax benefits by deducting mortgage interest and real estate property taxes on your Federal income tax returns. Consult your tax advisor.
  • Help build a strong credit history by making on-time mortgage payments.
  • Flexible income, down payment and credit guidelines.
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