Start off with a lower rate

drawing of person and house

Great for first-time home buyers or if you are planning to upgrade or move in a few years. Save money now with a low payment.

Get into your home with a lower monthly payment

  • Low, introductory rate for the first 5 years
  • Borrow up to 97% of the value of the home
  • Lower mortgage insurance premiums than a fixed-rate loan
  • Two great options: 5/1 and 5/5

How does an ARM work?

  • You pay a low fixed rate for the first 5 years
  • For a 5/1, your rate is adjusted annually starting at year 6, based on the 1 year LIBOR Index (with a 2.75% margin)
  • For a 5/5, your rate is adjusted once every 5 years, based on the 5 year Treasury Index (with 2.50% margin)
  • Rate adjustments are capped at 2% (initial), 2% (periodic), and 5% (lifetime maximum)

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Loans subject to credit approval. See current rates and terms. Adjustable Rate Mortgages are variable and your annual percentage rate may increase after the original fixed rate period.  Adjustable Rate Mortgage financing will require a minimum of a 3% down payment. For example a $100,000 loan approved at 97% of value would require a down payment of $3,000. Payment example: The monthly payment for a $97,000 loan the first 5 years with a 5/1 loan with a 3.50% APR and 30 year term would be $435.57. If the maximum of a 2% increase took place at year 6, the minimum payment would be $534.30. If the lifetime maximum were reached, the minimum payment would be $694.06.  This payment example does not include taxes and insurance.  Your actual payment may be higher.  The monthly obligation will be determined by the total loan amount at the time of closing and the term and interest rate of the loan.  See our Loan Calculators for specific examples.