Adjustable-Rate Mortgage Promotion

An adjustable-rate mortgage (ARM) is a home loan that begins with a fixed introductory interest rate for a set period of time. After that period, the interest rate may adjust based on market rates.

An ARM begins with a lower introductory interest rate because the rate is fixed for an initial period before potential adjustments begin. This can provide qualified borrowers with a competitive starting rate and lower initial payments.

A fixed-rate mortgage keeps the same interest rate for the life of the loan. An ARM starts with a fixed introductory rate before the interest rate may adjust based on market rates. One advantage of our ARM is that it limits the first and subsequent annual adjustment to no more than two percentage points.

For the first five years, the 4.99% introductory rate remains fixed. After that period, the rate may adjust once per year based on market conditions and loan terms, which could impact your monthly payment. Your loan officer can help explain how adjustments work and what to expect. 

A 5/1 ARM may be a good fit for qualified borrowers seeking a competitive introductory rate who expect to sell, relocate, refinance, or significantly pay down their loan before the initial five year fixed-rate period ends. However, refinancing is not guaranteed and depends on future interest rates, home equity, credit, and qualification requirements. 

The best mortgage option depends on your goals, timeline, and financial situation. A Police Mortgage loan officer can help you compare your options and determine if an ARM may be a good fit.