Secure Your Dream Home!
7/1 Adjustable Rate Mortgage (ARM) As Low As 5.49% APR* Fixed for 7 Years! The rate may increase after 7 years.
Benefits
- Great For New Home Purchases or Refinancing
- Save Money With a Low Rate
What is an ARM? (Adjustable Rate Mortgage)
An ARM (Adjustable Rate Mortgage) has an interest rate that changes over time, unlike fixed-rate mortgages with a constant rate. ARMs typically start with a lower rate, making them a smart option if you plan to own your home short-term, expect income growth, or find fixed rates too high.
How Adjustable-Rate Mortgages (ARMs) Work?
ARMs have two key phases: a fixed period and an adjustment period. Here’s how the two differ:
- Fixed Period: The interest rate doesn’t change during this period. It can range anywhere between the first five, seven, or ten years of the loan. This is commonly known as the intro or teaser rate.
- Adjusted Period: This is the point at which the rate changes. Changes are made during this period based on the underlying benchmark, which fluctuates based on market conditions.
What are the benefits of an ARM?
- Lower initial interest rate than a fixed-rate mortgage
- Potential savings in early years of the loan
- Great for short-term homeowners or those expecting increased income
Is an ARM Right for You?
An ARM can be a smart financial choice if you are planning to keep the loan for a limited time and will be able to handle any rate increases in the meantime. Put simply, an adjustable-rate mortgage is well suited for the following types of borrowers:
- People who intend to hold the loan for a short period of time
- Individuals who expect to see a positive change in their income
- Anyone who can and will pay off the mortgage within a short time frame
Bottom Line
When comparing mortgage options, it’s important to know the difference between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). Fixed rates offer stability, while ARMs start lower but adjust with the market. Not sure which is right for you? Our team can help guide your home financing decision.
Information above was obtained from the following sources:
Open an ARM today.
You can open an ARM online, over the phone, or in person.
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*APR=Annual Percentage Rate. The 7/1 ARM offers a fixed rate for the initial period of the loan and adjusts to a one-year ARM after that period. The interest rate and monthly payment may adjust annually based on the weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year (the index), plus a margin of 2.25 percentage points with a 2% annual change cap and a 6% life time cap with a floor rate of 3%. Payment Example: A $250,000 mortgage loan with $3,353.40 closing costs will be paid in 360 monthly installments. The payment would be $1,436.96 for the first 84 months. The interest rate may change on the seven-year anniversary date of the loan closing and then on that day every 12th month thereafter based on the one-year Constant Maturity Treasury (CMT). The maximum rate change per adjustment is 2% and the maximum lifetime interest rate change is 6%. The payment of $2,295.55 is the maximum loan payment amount. Payment examples do not include taxes and insurance premiums. Rates and terms are subject to change without notice. Subject to approval of application. Contact a Bridge mortgage loan officer for any applicable restrictions and further program details. Offer ends 9/30/25. Bridge Credit Union NMLS# 402575. Federally Insured by the NCUA. Equal Housing Opportunity.
