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Conventional Adjustable-Rate Loans

Live your dream with flexible home loans at great rates.

We’ll help you get a home you can afford.

Adjustable-rate mortgages (ARMs) have an interest rate that changes periodically. That change depends on shifts in a financial index associated with the loan. These mortgages generally offer very competitive initial rates.

Perfect for you if:
  • You’re looking for a home at a great loan rate.
  • Your long-term plan may include selling your home.
  • You have flexibility in your yearly budget.

Loan Features

  • Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 5, 7, or 10 years, then adjust periodically.
  • Loans available for 30-year amortization schedules.
  • Interest rate caps set a limit on how high your interest rate can go.
  • You may be able to add extra features such as interest-only payments.

Loan Benefits

  • Typically ARMs have a lower initial interest rate than on a fixed-rate mortgage.
  • The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
  • May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.

Considerations

  • Monthly principal and interest payments may increase when the interest rate adjusts.
  • Your monthly principal and interest payments may change every year after the initial fixed period is over.
  • Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 3, 5, or 7 years, then adjust periodically.

Terms

First Bank offers a wide range of ARM products. Our most popular ARM products include:

  • 5/1 ARMs: a fixed-rate for five years, an adjustment, and then change annually thereafter.
  • 7/1 ARMs: a fixed-rate for seven years, an adjustment, and then change annually thereafter.
  • 10/1 ARMs: a fixed-rate for ten years, an adjustment, and then change every ten years.

Apply online today

Applying for a First Bank mortgage is fast, easy and secure. Before you begin, have the following information on hand.

Financial Information
  • Income
  • Your total assets
  • Monthly expenses
Property Information
  • Estimated purchase price and down payment amount (if buying)
  • Estimated property value and loan amount (if refinancing)
Work with a local mortgage specialist

Loans are subject to credit approval.

For a $200,000 mortgage loan for a term of:

  • 5 year adjustable rate* of 4.375%, with an APR of 4.527%, the monthly payment would be $ 998.57.
  • 7 year adjustable rate* of 4.5%, with an APR of 4.653%, the monthly payment would be $1,013.37.
  • 10 year adjustable rate* of 4.625%, with an APR of 6.508%, the monthly payment would be $1,028.28.

Based on 20% down payment and 1% Origination Fee. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. These payments are based on recent interest rates and can vary based on individual credit.

*Adjustable interest rates and payments are subject to increase after the initial fixed-rate period (5 years for a 5/1 ARM, 7 years for a 7/1 ARM and 10 years for a 10/1 ARM).

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