An adjustable rate mortgage (ARM) has a monthly payment that may change over the term of the loan. With our 10/6 SOFR Adjustable-Rate Mortgage, your payment won't change for the first ten years of the loan and then can change each year based on market conditions, subject to the specific terms of the loan.

Loan Term360 MonthsThe period of time for the loan to be repaid.
Interest Only TermN/ADuring this term, the payment covers only the cost of your interest. After this period, the payment will increase.
Initial Fixed Period120 MonthsThe initial rate will be fixed for this period. After this period, the interest rate will be adjusted at the frequency noted below (Subsequent Adjustment Period).
Subsequent Adjustment Period6 MonthsAfter the initial fixed period, the interest rate will be adjusted each time this number of months has passed.
Initial Adjustment Cap5.0000%The maximum amount the rate may increase or decrease after the Initial Fixed Period.
Periodic Adjustment Cap1.0000%The maximum amount the rate may increase or decrease after each Subsequent Adjustment Period.
Maximum Interest RateInitial Rate + 5.0000%The maximum interest rate you may be required to pay.
Index30-day Average SOFR The Index that we use for determining rate adjustments to this ARM Loan Program is the 30-day average yield of the cost of borrowing cash overnight collateralized by the U.S. Treasury securities in the repurchase agreement (repo) market, commonly referred to as the Secured Overnight Financing Rate (“SOFR”), forth-five (45) days before a rate change.  Information about SOFR is published by the Federal Reserve Bank of New York on its website (newyorkfed.org). 
Current Index Value4.8420%The current value of the Index - this value is subject to change without notice.
Margin2.7500%The amount that is added to the Index to determine the rate at each adjustment (subject to any adjustment caps or floors).