Adjustable Rate Mortgage (ARM) Loans

Adjustable Rate Mortgage Loans (ARMs) have interest rates that change periodically throughout the life of the loan.

Key Facts About ARMs

When you buy a home, you can decide if you want your interest rate to be fixed or adjustable. Here are some key facts on ARMs you should consider when deciding:

• An ARM typically offers a lower initial interest rate than most fixed rate loans.
• ARMs do have an initial rate period where the interest rate will remain the same for an initial period.
• After the initial period comes to an end, the interest rate can change every year.
• With an ARM, your monthly mortgage payment will increase when the rates increase, and it is important to prepare for higher mortgage payments.
• ARM rates will fluctuate (increasing and/or decreasing) periodically.

Why should I choose an ARM?

There are many reasons why someone might prefer to choose an ARM. Some of the most common are:

• If you are searching for the lowest rate available, ARM loans offer you that low initial rate.
• With an ARM loan, buyers often qualify for a higher loan amount and the opportunity to buy a more expensive home at a lower interest rate.
• If you plan to move prior to the end of the initial rate period, and will not incur the rate fluctuation, an ARM is an option to consider.

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.