Adjustable Rate Mortgage
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.
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
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.