5-6-month ARM

5-6-month ARM

The APR will stay the same for the first 5 years of the loan versus changing every year.

This is an Adjustable Rate Mortgage; however, it’s different than a typical ARM in that your Annual Percentage Rate will stay the same for the first 5 years of the loan versus changing every year. After 5 years, the rate can adjust every 6 months, depending on the market.

  • Rate cap at 5%. A rate cap is a limit on how much the rate can change at the end of each adjustment period over the life of the loan.
  • Index = SOFR
  • Margin = 3.0%
  • Fixed rate conversion option is not available.

Features & Benefits

  • Best choice if the loan amount you are looking to finance is under $548,251 and you are looking for a home loan that does not require 20% down.
  • Initial Adjustment up to +/-2.00% first rate change after first five-year term.
  • Subsequent Adjustment every 6 months thereafter, rate adjustment may not result in an increase or decrease of more than 1.00% from the prior interest rate.

An example APR for a 5/6-month ARM loan is 3.383%. An example monthly mortgage payment of principal and interest is $449. The example quotes are based on a property value of $200,000 and a loan amount of $100,000. The Annual Percentage Rates (APR) stated is an estimate and is intended for informational use only. Your actual APR may vary based on your actual loan amount. Please speak with a Loan Executive for additional information about our rates and fees. Rates are subject to change without notice. Your actual rate and/or points may be different, as many factors are evaluated for a loan approval. This product is subject to change or cancellation at any time without prior notice.