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Piedmont Federal offers two adjustable rate mortgage options for those who desire a lower initial rate. An adjustable rate mortgage or ARM, is a home loan with an interest rate that changes periodically, meaning the monthly payments can increase or decrease. An ARM can help you save money in the early days of your loan by offering a lower initial rate than a fixed-rate mortgage.
5/1 Adjustable Loan
The 5/1 adjustable rate mortgage (ARM) is offered to qualified applicants who plan to be in the home for three to five years, expect their income to increase in the future or plan to refinance before the loan adjusts.
It provides you the security of an interest rate and a monthly payment that is fixed for the first 5 years; then adjusts every year thereafter.
Adjustable Rate Features:
Initial Interest Rate is the Secured Overnight Financing Rate (SOFR) Daily Average Rate + 1% margin
The interest rate is fixed for the first five years and adjusts every year thereafter. The first adjusted interest rate has a cap of +/- 2.00% and subsequent adjusted interest rates cap at +/- 2.00%. The lifetime maximum rate is the initial interest rate +/- 5% over the duration of the loan, with the lowest rate floor at 4.00%
This loan may be for a primary residence or second home and may be used for a single-family detached home, condominium or townhouse. (Manufactured homes and mobile homes are not eligible.)
First-time homebuyers are eligible for this loan product.
ARM products are not eligible for the Homebuyers Dream Program.
10/30 Adjustable Loan
The 10-year adjustable rate mortgage (ARM) is offered to qualified applicants at one-half percent below our current 30-year fixed rate mortgage product. This loan is popular with buyers who plan to be in their homes less than 10 years because of the lower interest rate.
It provides you the security of an interest rate and a monthly payment that is fixed for the first 10 years; then, makes available the option of paying the outstanding balance in full or elect to amortize the remaining balance over the final 20 years at our current 30-year fixed rate, but no more than 3% above your initial interest rate.
Adjustable Rate Features:
This product is offered to qualified applicants at ½% below our current 30-year-fixed rate mortgage product.
The interest rate is fixed for the first 120 payments (10 years).
After 10 years, the interest rate will be adjusted to our current 30-year fixed rate, not to exceed 3% above the introductory rate, but not less than the initial interest rate. Your payment of principal and interest will be adjusted accordingly beginning with the 121st payment and will remain unchanged for the remaining term of the loan (20 years).
This loan may be for a primary residence or second home and may be used for a single-family detached home, condominium or townhouse. (Manufactured homes and mobile homes are not eligible.) Areas of Service »
First-time homebuyers are eligible for this loan product.
ARM products are not eligible for the Homebuyers Dream Program.
WHY CHOOSE PIEDMONT FEDERAL FOR YOUR MORTGAGE?
We have enhanced mortgage product offerings to provide you with a comprehensive range of solutions, ensuring a customized approach to meet your specific lending needs. More reasons »
