Rate is fixed for a period of 5, 7 or 10 years

After the fixed-rate period, your interest rate may change once per year – either up or down

No prepayment penalty


Adjustable Rate Mortgages (ARM) may provide you with the flexibility of a lower starting interest rate and initial monthly payment. ARM loans are well-suited for people who don’t plan to stay in the property long-term, or expect their income to rise over time. It is important to keep in mind that the rate adjusts based on market rates, and fluctuates periodically based on financial market conditions, which may result in a higher monthly payment.

  • Adjustable Rate Mortgages (ARM) have an interest rate that is fixed for an initial period (5, 7 or 10 years) and becomes adjustable annually for the remainder of the loan term. For example, a 5/1 ARM would have a fixed interest rate for the first five years and then the rate will adjust annually for the remaining term of the loan.
  • Includes an interest rate cap that sets a limit on how high your interest rate can go.
  • No prepayment penalty. You may pay some or all of your loan balance in advance without a penalty.