Adjustable rate loans

Loan types

A Dynamic Mortgage Option with Lower Introductory Interest Rates

Today’s home buyers are in a unique position to combine the benefits of a fixed rate mortgage with the savings opportunities of an Adjustable Rate Mortgage (ARM). Our “Hybrid ARM” solutions give you the best of both worlds.

How Does an Adjustable Rate Mortgage Work?

An ARM offers a fixed rate term followed by regular rate adjustment intervals thereafter.

These loans are often represented by fractions, such as 10/1. The first number represents the number of years the interest rate is fixed. The second number indicates the adjustment interval, or how often the interest rate will change.

For example, in a 7/1 loan, the fixed period is 7 years. After that time, the interest rate adjusts every 1 year for the life of the loan.

Benefits of Adjustable Rate Mortgages

There are several potential advantages of adjustable rate mortgages, including:

  • A great choice for buyers who plan to move or refinance in the next few years
  • Lower interest rates during the initial fixed term
  • Choose from 5, 7, 10, and even 15 year fixed rate terms
  • Conventional and Jumbo loan amounts are available
  • Adjustment caps help protect against surprises