An ARM loan is where the interest rate may increase or decrease over the term of your loan. Our adjustable-rate loans begin with a low constant rate for a specific period of time, and then may adjust upward or downward based on a periodic review of a loan index. Our ARM loans provide the advantage of allowing the homeowner to take advantage of a lower introductory rate over what is available under a fixed-rate loan. Adjustable-rate loans are more popular with individuals who do not plan to live in the home for an extended period of time.

Benefits:

Arm Products:

1-Year ARM - Treasury indexed adjustable rate loan where the interest rate may be adjusted annually.

3-Year ARM - Treasury indexed adjustable rate loan that has an initial fixed rate of 3 years and thereafter may be adjusted annually.

5-Year ARM - Treasury indexed adjustable rate loan where the initial rate is fixed for 5 years and thereafter may be adjusted annually.

7-Year ARM - Treasury indexed adjustable rate loan that has an initial fixed rate for 7 years and thereafter may be adjusted annually.

Interest rate components for Adjustable-Rate Mortgages:

Index - A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills.

Margin - The margin is the amount (shown as a percentage) that is added to the index to determine what your new mortgage rate will be until the next adjustment period.