Adjustable-Rate Mortgage
Adjustable Rate Mortgages (ARM) are ideal if you need a larger loan amount but want to keep your payments lower initially. An ARM may also be a good choice if in the years ahead, you expect your income to increase or plan to move or refinance when the rate adjusts.
- Monthly principal and interest payments remain the same for only a certain number of years and then adjusts.
- If you do not refinance prior to the end of the fixed rate, the rate can go up or down based on the market.
- The initial interest rate is usually lower than on a fixed rate mortgage loan.
- Local processing and underwriting for quick turnaround.
Adjustable Rate Mortgage Programs
Tioga State Bank offers a 5/1 ARM, a 10/10 ARM and a 15/15 ARM.
5/1 ARM
The interest rate is fixed for 5 years, and then subject to change every year thereafter.
10/10 ARM
The interest rate is fixed during the first 10 years, adjusts in year 11, and then remains fixed for the remainder of the term.
15/15 ARM
The interest rate is fixed during the first 15 years, adjusts in year 16, and then remains fixed for the remainder of the term.