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Adjustable Rate Mortgage Loans

Adjustable Rate Mortgage (ARM) loans allow for lower interest rates and payments during a fixed period of time.

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What is it?

An adjustable rate mortgage (ARM) has a 30 or 40-year term with a fixed monthly payment for up to 10 years, after which the payment changes semi-annually based upon current interest rates.

Who is it for?

ARM loans may be good for people who don't plan to live in the home for 30 years, people looking to minimize payments, and those who are comfortable with rate and payment fluctuations.

What are the benefits?

Because the initial fixed-rate and payment on an ARM are typically lower than a traditional fixed-rate mortgage, home buyers are often using this to stretch their home buying dollar.

Loan details

Adjustable-rate mortgages (ARM) have fixed monthly payments for up to 10 years, after which the payment changes semi-annually based upon current interest rates.  Your interest rate and monthly payment may increase or decrease depending on the interest rates at that time.

ARM loans are named depending on the length of time their interest rate and payment is to remain fixed, along with how often that rate may adjust after the fixed period. For example, when you see a “5/6” ARM loan, the five (5) represents the period in years with which the interest rate and payment is to remain fixed. The six (6) represents the semi-annual adjustment after the 5-year term.

Interest-only loans may help by providing options that may allow you to you minimize your monthly payment.

We offer:

  • Jumbo ARMs – 30 & 40-year terms
  • Fixed-rate options of 3, 5, 7, and 10 years
  • Interest-only options available with 30 and 40-year terms
  • Competitive rates for owner-occupied, second home and investment properties
  • Up to 80% loan-to-value on loans up to $3 million
  • LTVs to 75% up to $5 million
  • For lower-balanced loans, we offer 5/1 ARMs for FHA and VA

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Loans subject to credit and collateral approval. Not all loan programs are available in all states for all loan amounts. Restrictions may apply. Terms and conditions subject to change. Union Bank NMLS ID #539249.