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Fulton Bank
Fulton Bank

Adjustable Rate

Start with a lower interest rate and lower monthly payments.

If you’re buying a home and want lower payments than a traditional mortgage, our Adjustable Rate Mortgage (ARM) may be a smart choice. Adjustable rate mortgages (ARMs), also known as variable-rate mortgages, begin with a lower interest rate and lower monthly payments for a set period and then have a variable interest rate that may change periodically depending on financial index changes. Generally speaking, your rate and monthly payment may increase or decrease if the index rate goes up or down, and will continue to adjust once every six months for life of the loan.

  • Allows for a lower initial monthly payment
  • Excellent choice if you don't plan to stay in your home for a long period, or if you expect an increase in income
  • Initial interest rate will remain the same for a period of 1, 3, 5, 7, 10, or 15 years, depending on the mortgage you choose, and then adjust every six months, based upon current interest rates plus a margin

ARM example:

In a 3/6 ARM, the 3 stands for an initial 3-year period during which the interest rate remains fixed while the 6 shows that the interest rate is subject to change once every six months thereafter.

LIBOR Mortgage Transition:

In mid-2023, financial institutions around the world will phase out LIBOR (London Interbank Offered Rate). Learn how this transition may impact Adjustable Rate Mortgage loans


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