Adjustable Rate Mortgage Loans

  • Lower initial rate and monthly payment compared to a fixed rate loan
  • Lower payment over a shorter period of time
  • Rates and payments may go down if rates improve
  • May qualify for higher loan amounts and more expensive home
  • Payments can change over time
  • Appropriate for borrowers who plan to occupy the home for 10 years or less
  • Appropriate for borrowers who may be transferred frequently
  • Appropriate for borrowers who want a lower initial monthly payment and are comfortable with a variable payment