Adjustable Rate Loans

An Adjustable Rate Loan offers a lower initial interest rate and payment so borrowers can generally qualify for a higher loan amount. This rate and payment, however, can go up if economic influences increase interest rates.

Adjustable Rate Loans come with 1-year, 3-year, or 5-year adjustment periods. This means your initial rate is locked for 1, 3, or 5 years then adjusts annually thereafter. They also have a conversion option that allows the loan to be converted to a Fixed Rate Loan at certain times during the term of the loan.

Adjustable Rate Loans come with your choice of a 15, 20 or 30 year term. They can be made with loan-to-values up to 97%. Private mortgage insurance is required for loans exceeding 80% loan-to-value. The maximum amount for an Adjustable Rate Loan is $417,000.

Adjustable Rate Loans should be considered if you:

• Need to keep your initial payment as low as possible
• Believe your income will increase significantly
• Believe interest rates will stay the same or go down
• Plan on moving to another home within 5 to 7 years

Adjustable Rate Loans can be used to:

• Finance the purchase of a new home
• Refinance an existing home
• Finance the construction of a new home
• Finance major home improvements

Stop by the branch office nearest you or e-mail us us for more information.

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