The hybrid of home loans.
An adjustable-rate mortgage (ARM) is a great, affordable option for borrowers who don’t plan on staying in their home very long or those who would like to save more money up front. Adjustable mortgage loans offer borrowers the benefits of lower initial monthly payments and interest for a specific time—typically 5 years1, 7 years2, or 10 years3. ARM's typically give you the opportunity to qualify for a larger loan, lower payments, and more short-term savings than a fixed-rate mortgage. After the initial rate period ends, your rate could reset higher or lower once per subsequent year based on current market rate; however, you may still be able to refinance into a fixed-rate mortgage, should you desire to.
FEATURES YOU'LL LOVE:
- ARM rates are often lower than fixed rates, letting you enjoy lower monthly payments
- Lower initial interest rate and monthly payment may allow you to qualify for a higher-priced home
- Higher short-term savings
- No rate or payment increases if you move (or refinance) within the initial rate period
- Easy online mortgage application
Applying for an adjustable-rate mortgage is quick and easy, and you’ll enjoy lower monthly payments from the start.
Make interest rates work for you.
Because an ARM mortgage only has a fixed-rate a specific amount of time, your rate could swing higher or lower once a year after the introductory phase. If rates fall, so will your monthly payments—you will benefit without refinancing or paying new closing costs and fees. And if rates go up, you may still be able to refinance into a fixed-rate mortgage to avoid higher payments. Whatever the case may be, you can count on your First Commercial Bank team to walk you through all your mortgage options.
For more information on home loans, visit our Mortgage Information Center.