Popular Adjustable Rate Mortgage Programs

3-Year Fixed-Rate Mortgage

This type of adjustable-rate mortgage (ARM) maintains the same initial interest rate for the first three years of your loan. Your interest rate then adjusts annually and can move up or down as market conditions change. Be sure to ask us about the interest rate caps for both the annual adjustments and for the life of the loan

Key Features

- Your initial interest rate will be lower than a fixed-rate mortgage, so you may be able to afford more home. You are protected against interest rate increases for the first three, five, seven, or ten years of the loan, depending on which type of fixed-period ARM you choose.

- You may have the option to convert your ARM to a fixed-rate mortgage at the first, second, or third interest rate adjustment dates.

- You have time to improve your financial position (i.e., salary increases) or accumulate additional assets before the interest rate adjusts at the end of the fixed period.

- The lifetime interest rate cap for fixed-period ARMs is typically five to six percentage points above your initial rate. Your annual cap during the adjustable period is typically one to two percentage points above or below the current rate.

5-Year Fixed-Rate Mortgage

This type of adjustable-rate mortgage (ARM) maintains the same initial interest rate for the first five years of your loan. Your interest rate then adjusts annually and can move up or down as market conditions change. Be sure to ask us about the interest rate caps for both the annual adjustments and for the life of the loan.

Key Features

- Your initial interest rate will be lower than a fixed-rate mortgage, so you may be able to afford more home. You are protected against interest rate increases for the first three, five, seven, or ten years of the loan, depending on which type of fixed-period ARM you choose.

- You may have the option to convert your ARM to a fixed-rate mortgage at the first, second, or third interest rate adjustment dates.

- You have time to improve your financial position (i.e., salary increases) or accumulate additional assets before the interest rate adjusts at the end of the fixed period.

- The lifetime interest rate cap for fixed-period ARMs is typically five to six percentage points above your initial rate. Your annual cap during the adjustable period is typically one to two percentage points above or below the current rate.

7-Year Fixed-Rate Mortgage

This type of adjustable-rate mortgage (ARM) maintains the same initial interest rate for the first seven years of your loan. Your interest rate then adjusts annually and can move up or down as market conditions change. Be sure to ask us about the interest rate caps for both the annual adjustments and for the life of the loan.

Key Features

- Your initial interest rate will be lower than a fixed-rate mortgage, so you may be able to afford more home. You are protected against interest rate increases for the first three, five, seven, or ten years of the loan, depending on which type of fixed-period ARM you choose.

- You may have the option to convert your ARM to a fixed-rate mortgage at the first, second, or third interest rate adjustment dates.

- You have time to improve your financial position (i.e., salary increases) or accumulate additional assets before the interest rate adjusts at the end of the fixed period.

- The lifetime interest rate cap for fixed-period ARMs is typically five to six percentage points above your initial rate. Your annual cap during the adjustable period is typically one to two percentage points above or below the current rate.

10-Year Fixed-Rate Mortgage

This type of adjustable-rate mortgage (ARM) maintains the same initial interest rate for the first 10 years of your loan. Your interest rate then adjusts annually and can move up or down as market conditions change. Be sure to ask us about the interest rate caps for both the annual adjustments and for the life of the loan.

Key Features

- Your initial interest rate will be lower than a 30 year fixed-rate mortgage, so you may be able to purchase a larger home. You are protected against interest rate increases for the first three, five, seven, or ten years of the loan, depending on which type of fixed-period ARM you choose.

- You may have the option to convert your ARM to a fixed-rate mortgage at the first, second, or third interest rate adjustment dates.

- The lifetime interest rate cap for a fixed-period ARM is typically five to six percentage points above your initial rate. Your annual cap during the adjustable period is typically one to two percentage points above or below the current rate.

Click here to return to the Mortgage Program Page