Adjustable Rate Mortgages

An adjustable rate mortgage (ARM) offers a lower initial interest rate than most fixed rate loans. The trade off?

         Interest rate can change periodically, usually in relation to an index.

         Monthly payment will go up or down accordingly. 

Rates Are Lower

Because ARMs are subject to rate adjustments later on, the initial interest rate is set lower than standard fixed rates. This rate provides you with initial lower payments or increased purchasing power.

ARMs Have Changed
In addition to standard programs that adjust annually, our programs provide an initial fixed rate from three to seven years before the rate adjusts at all. These options are best for those who want added payment stability and lower monthly expense.

Life Styles Change
Times are changing. First-time homebuyers no longer tend to stay in their "starter" home for 30 years. Experienced homeowners often plan to pay off their mortgage long before the 30-year maturity date. In these situations, members may benefit from an ARM with an initial fixed rate period that corresponds with the amount of time their loan is expected to be outstanding.

An adjustable rate mortgage may be a good choice if you:

• Want to maximize your buying power.
• Want to keep your payments lower during the first few years of your loan.
• Plan to move into a different home or pay off your mortgage within 10 years.
• If, in the coming years, you expect your income to increase significantly

For Rates, Assumptions and full disclosures visit our Daily Rate Page.