While the name of this type of loan almost says it all, there are certain things about Adjustable Rate Mortgages (ARMs) you should know.

The Rates Are Lower -- Way Lower
Because ARMs are subject to rate adjustments later on, the initial interest rate is set lower than standard fixed terms. This rate provides you with initial lower payments or increased purchasing power.

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

Lifestyles Change
First-time homebuyers no longer tend to stay in their starter home for 30 or 40 years and experienced homeowners often plan to pay off their mortgages long before the 30-year or 40-year maturity date. These members may benefit from choosing an ARM product 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 within the next 10 years
• Plan to pay off your mortgage within the next 10 years
• You expect your income to increase significantly