Adjustable Rate Mortgages

Adjustable Rate Mortgage Loans

Advantages of an Adjustable Rate Mortgage (ARM):

  • A lower monthly payment in the early years of the loan providing you with considerable interest savings over a fixed-rate loan.
  • A low interest rate that's locked in for the first few years of the loan so you'll know what to budget each month. And, limits on how much that interest rate can change over time, so you're able to plan for changes in your interest rate. The interest rate could go up or down based on an established index.
  • The lower initial interest rate, may allow you to qualify for a higher loan amount so you can purchase the home you really want.

An ARM may be a good choice if you:

  • Want lower payments during the first few years you are in your home.
  • Plan to stay in your home less than 10 years.
  • Plan to pay off your mortgage within the next 10 years.
  • Expect your income to significantly increase in the coming years or you will pay off other loans during this time period.


The adjustable interest rate on an ARM is determined by interest rate trends, so if interest rates are on the rise, your loan rate and monthly mortgage payment will also increase after the fixed rate period of the loan.

Standard credit qualifications apply. All loans are subject to final credit approval. Please consult your tax advisor, as interest paid on these loans usually is tax-deductible. Financing on homes in Colorado. The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purposes. Consult a tax adviser for further information regarding the deductibility of interest and charges.