An adjustable rate mortgage* (ARM) is a loan where the interest rate and monthly principal and interest (P&I) payments will adjust periodically. Loans are available in a variety of terms and typically include interest rate caps that set a limit on how high your interest rate can go.
Adjustable Rate Mortgage Benefits
- ARMs typically have a lower initial interest rate
- The interest rate cap limits the maximum amount of your principal + interest payment may increase at each interest rate adjustment and over the life of the loan
- May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years
Adjustable Rate Mortgage Considerations
- Monthly principal and interest payments may increase when the interest rate adjusts
- Your monthly principal and interest payments may change every year after an initial fixed period is over
For more information or to apply for a loan, schedule an appointment with an AuburnBank Mortgage Originator today.
*All loans are based on approved credit.
*Account disclosures are provided at application.
