With Adjustable-Rate Mortgages, your home loan will be at a lower rate for the first 3 to 7 years, depending on the loan you select. You can select from 3, 5, or 7 year initial term that adjusts annually thereafter (3/1, 5/1, or 7/1 ARM), or a 5 year initial term that adjusts every 5 years thereafter (5/5 ARM). The monthly payments are based on a 30-year amortization, and can change throughout the life of the loan. After the initial term, the interest rate adjusts higher or lower based on the 1 year US Treasury market. The rate changes are limited to an increase or decrease of up to 2% at each annual adjustment, and subject to both a minimum rate (floor) and maximum rate (ceiling) over the life of the loan. Our Mortgage Loan Officers can help you identify which option may be best for you.