5/5 Adjustable Rate Mortgage
Enhance Your Buying Power with a 5/5 Adjustable Rate Mortgage
If you'd like to keep your monthly mortgage payments as affordable as possible while getting protection from rising interest rates, the Burke & Herbert Bank 5/5 Adjustable Rate Mortgage might be just what you're looking for.
Our "5/5 ARM" starts with a lower rate compared to a traditional fixed rate loan, so it can be a much more affordable option, especially in the first 5-to-10 years. Be sure to consider this option if you expect to be in your home less than 10 years. Also consider paying up-front points to lower your interest rate.
• Low initial interest rate
• Initial rate fixed for five years, and adjusts just once every five years
• Maximum 2% rate increase per adjustment
• Maximum 5% lifetime adjustment cap
• Available for primary residences and second homes
Don't wait to take advantage of this special program. To apply, or to learn more, call 703-684-1655 to make an appointment with a Mortgage Loan Officer.
The above is for information only and is not a commitment to lend. All loans are subject to underwriting approval. Information displayed is accurate as of 05/21/20 and is subject to change without notice. The Annual Percentage Rate (APR) shown reflects the interest and applicable closing costs.
Interest rate and payment may increase over the life of the loan. After the initial fixed-rate period, your interest rate can increase or decrease every five years, according to the market index. Any change may significantly impact your monthly payment. For conforming and jumbo ARM interest rates and adjustments, the interest rate will be based on the following index: the weekly average yield on U.S. Treasury securities adjusted to a constant maturity of five years plus a margin of 2%, not to exceed interim and lifetime adjustment caps. The Maximum Interest Rate and Maximum Payment displayed are based on the initial starting rate plus a margin of 5.00%, which is the maximum lifetime adjustment cap.
The minimum down payment requirement is 10%, which could be higher depending on loan amount and credit score.
Page updated 05/21/20