Adjustable-Rate Mortgages (ARMs)

With a fixed initial low Annual Percentage Rate (APR)¹ from 5 to 15 years, you can increase your buying power with lower monthly payments. ARMs start with a fixed APR for a set period of time. Once the initial fixed-rate period ends, the interest rate will adjust based on your term and market conditions. At GTE Financial, we cap our rate adjustments at 5%², so you are protected from significant rate hikes.

Short-term purchase: If you plan to sell or refinance your home before the first adjustment, take advantage of the lower initial fixed-rate period, without worrying about future rate adjustments.

Jumbo borrowers: When taking out larger mortgages, the lower initial rate can result in significant savings.

Expected income growth: If you anticipate significant increases in your income, such as those early in their career, you can benefit from the lower initial payments while you may be better positioned to handle potential rate increases at adjustment periods.

Potential for decreasing rates: If you anticipate market rates to fall, your rate and monthly payments could decrease at your adjustment periods.

5/6 month: Your initial rate will stay the same for the first 5 years. Your rate then adjusts up or down based on the market every 6 months. This term is great for purchasing your starter home or short-term purchases.

7/6-month: Your initial rate will stay the same for the first 7 years. Your rate then adjusts up or down based on the market every 6 months. This term is great for those who expect income growth or rate decreases in the future.

10/6-month:  Your initial rate will stay the same for the first 10 years. Your rate then adjusts up or down based on the market every 6 months. This term is great for Jumbo purchases, if you plan to move in 10 years, or you expect rate decreases.

15/15-year: Your initial rate will stay the same for the first 15 years. You will have 1 rate adjustment during the life of the loan, then your rate will stay the same for the next 15 years. This term is great when purchasing your forever home or wanting to give the market extended time for rate decreases.