What Is an Adjustable-Rate Mortgage (ARM)?

You start with a fixed rate for a set period of time. When this period expires, the interest rate you pay on an ARM may change periodically to keep in line with the appropriate treasury index.  This means that your monthly payments will go up and down to reflect those changes, and adjustments will be made in accordance with the specific guidelines of the product.

Why choose an ARM?

• You get the benefit of lower rates and monthly payments at the beginning of the loan, compared with fixed-rate loans.
• You may get approved for a larger loan.
• You expect to sell your house within five years and want to take advantage of lower payments now.
• This loan may be used to purchase a home or to re-finance your existing home loan.