Adjustable Rate Mortgage (ARM)
ARMs offer flexibility and lower initial rate
An ARM provides an opportunity to get into a new home at a lower rate, with the rate fixed for an initial period of 3, 5, 7 or 10 years. After this period, the rate can increase annually.
What are the benefits of an ARM?
- Take advantage of a lower, interest rate that will not change for the initial fixed period.
- Choose from a 3/6mo, 5/6mo, 7/6mo or 10/6mo ARM. Depending on your choice, the rate will remain unchanged for 3, 5, 7 or 10 years and can change annually afterward.
- After the fixed period, rate (tied to a market index) has potential to decrease.
- If interest rates drop, so will your monthly payment.
- After the fixed period, rate can only increase up to 2% annually or 5% for the life of the loan.
- You have the option to refinance at the end of the fixed rate period.
Is an ARM right for you?
- Ideal if you think future interest rates could decrease.
- You intend to use the savings from your lower rate and payment to pay down your loan more quickly.
- You plan to own your home for a short time or expect a significant increase in future earnings.
Ask us about an Adjustable Rate Mortgage.
If you have questions, please submit our information request form or contact your nearest Old National mortgage expert.
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Subject to credit approval. Property insurance required. All funds will be verified.