Adjustable-Rate Mortgage (ARM) Highlights
Consumers Bank currently offers a 7/1 ARM and in a time of rising interest rates, Adjustable-Rate Mortgages (ARM) from Consumers National Bank are a great solution for locking in a low rate for the first 7 years of your mortgage.
Benefits of an ARM are:
- ARM rates usually lower than fixed mortgage rates
- Fixed rate for 7 years, then adjusts annually on the anniversary of the loan
With an adjustable rate mortgage, your interest rate will be lower initially, which means your monthly payments will be lower as well. This can give you the flexibility to save money in the short term, invest in other areas, or even put more money toward paying off your mortgage faster!
If you're interested in learning more about ARM mortgage loans, contact your local mortgage lender today! They will be able to provide you with more information and help you decide if an ARM is right for you.
Factors to consider:
You will be notified before annual rate adjustments.
Is it likely your income may increase over time to help offset any rate increases or decreases?
How long do you plan to be in the home? Many homeowners move after 7 years.
Do you anticipate any major expenses such as a new car, tuition, growing your family?
ARM rate adjustments are based on an index such as Prime Rate, Libor or Daily Treasury
Fully Indexed Rate (FIR) is index rate plus the margin at time of application. This may be the rate that is used to qualify the borrower.
Loan To Value is up to 95%
Loan fees and mortgage insurance may be required.