Adjustable Rate Mortgages (ARM)

ARMs can be an excellent choice of financing under certain conditions such as rising income expectations, high interest rates, and short-term homeownership. But because payments and interest rates can increase, either steadily or irregularly, homebuyers considering this kind of mortgage need to have the income to keep up with all possible rate and/or payment changes.
Typically, the longer the fixed period (i.e. one-year ARM, three-year ARM, five-year ARM, seven-year ARM), the higher the interest rate.

Benefits of a Adjustable Rate Mortgage:
  • Initial interest rate is generally lower than for a fixed rate mortgage
  • ARM could be less expensive over the long period.
  • Index based on U.S. Treasuries
  • Interest rate adjustment caps of 2% / Yr., 6% Lifetime.
     
Naugatuck Valley Savings and Loan offers financing on properties located within its lending area.