Intermediate Adjustable Rate Mortgages offer all the features of a fixed-rate loan combined with extraordinary initial value. With an Intermediate ARM, you may start with an initial fixed rate for one, three, five or seven years. After the specified period, the rate may change annually. Interest rate caps determine the maximum allowable increase or decrease when the rate changes, and a lifetime cap determines the maximum allowable increase over the life of the loan.

For example, one of the most popular adjustable rate mortgages is a 5-year ARM. The interest rate and payments on this loan do not change for the first five years, but can change thereafter.

The advantages of an adjustable rate mortgage include affordable payments and financing, a lower introductory interest rate and more financial freedom at the beginning of your home ownership. An ARM can be the ideal loan for many homebuyers. You should consider an ARM if you may live in your home for five years or less, if your income is likely to increase or if you would simply like to maximize your buying power and prefer to save extra cash during the first few years of your mortgage.

Fixed-rate mortgages are ideal for long-term homeowners. They provide the unparalleled stability of a fixed interest rate and monthly payment for the life of your loan. Although the initial payments of a fixed-rate mortgage may be higher than with an ARM, you assume no risk with this loan. We offer 15-, 30-, and 40- year fixed-rate terms on both conforming and jumbo loans, all with a variety of features.

With a fixed-rate loan, your interest rate and monthly payment are locked at the outset. You might pay a little more for this security, but for many people, the resulting peace of mind is worth it. This loan protects you from rising interest rates, and if the rates drop, you’ll have the option to refinance your loan and experience big savings.

Fixed-rate mortgages are often preferential to homebuyers who have consistent, fixed incomes, and/or prefer the security of steady payments.