Adjustable-Rate Mortgage

The adjustable rate provides more flexibility

An ARM features a lower initial interest rate that's fixed for a period of time. It's a smart option when you want a home loan with wiggle room, especially if you think interest rates will fall or you're planning to stay in your new home only a short period of time. After an initial fixed-rate period of 5, 7 or 10 years (depending on your choice), the rate may be adjusted annually.

• A competitive mortgage rate is provided during the initial payment period, which may allow for initial payments to be lower when compared to payments of a fixed-rate mortgage
• After the initial payment period has expired, your monthly payments will change depending on the market interest rate at the time
• Interest rate caps set a limit on how high your mortgage rate can go