An adjustable-rate mortgage (ARM) features an initial period with a fixed interest rate followed by an adjustable phase during which the rate can change. ARMs typically feature lower initial interest rates and lower monthly payments for the first few years of the loan, and then they adjust upward (or even down) based on market conditions and loan terms.
One of the ARM products we offer is a 5/1 ARM (sometimes referred to as a fixed-period ARM), in which the interest rate is fixed for the first five years of the loan and then adjusts annually for the remainder of the loan term.
*ARM interest rates and payments are subject to increase after the initial fixed-rate period (5 years for a 5/1 ARM, etc.). Refinancing is subject to credit approval.