An Adjustable Rate Mortgage (ARM) offers an initial interest rate that is below the market rate for fixed-rate mortgages. After a specified period of time, the rate on your loan will be adjusted to follow the market. To protect you in times of extreme rate fluctuations, there is a ceiling or “rate cap.” Your interest rate will not rise more than this percentage in any given adjustment period. There is also a maximum interest rate for your ARM loan, known as the “lifetime cap”. Your loan rate will never exceed this percentage.

You should consider an adjustable rate mortgage if:

• You plan on selling your home before or shortly after the initial loan period.
• You want a lower initial principal and interest payment.
• You are confident you can handle any future interest rate increases.

FEATURES

• There is no prepayment penalty.
• Interest rate increases are limited by annual and lifetime caps.
• You can easily make payments or view your loan activity with Online and Telephone Banking.
• You can process payments through Online and Telephone Banking by 6:00 p.m. and receive same-day credit.
• Citizens ARMs are tied to the one-year U.S. Treasury Constant Maturity Index.

LOAN OPTIONS

• 3 and 5 year ARMs – amortized over 15 or 30 year terms
• These mortgages maintain an initial interest rate for 3 or 5 years and can be adjusted every year thereafter based on the applicable index and margin.

Have more questions? Need help determining your payments or what may work best for you? Try our financial calculators.