ADJUSTABLE RATE MORTGAGES (ARMs) 1,2

RATES EFFECTIVE: December 21, 2024

Loan TypeTermAPRInitial
Interest
Rate		Initial
Fixed Rate
Period		First
Adjusted
Rate
5/1 ARM30 Years6.809%6.375%5 Years6.97%
7/1 ARM30 Years6.738%6.375%7 Years6.97%
10/1 ARM30 Years6.616%6.375%10 Years6.97%

 

FEATURES:

  • Initial fixed interest rate for 5 years, 7 years or 10 years.
  • Protection against unlimited interest rate increases with annual interest rate caps and a life of loan interest rate floor and ceiling.

Is an ARM loan right for me?

Want a lower rate and payment early in the loan term? Looking for a cheaper way to borrow money if you don’t plan on living in one place for very long?  Want to take advantage of falling rates without refinancing? If you say YES to any of these questions, an Adjustable Rate Mortgage (or ARM loan) at Hatboro Federal Savings might be for you.

How do ARMs work?

After the initial fixed-rate period, rates can adjust up or down annually based on the movement of a specific index. The interest rate consists of an index plus a margin. The margin is determined at the time you lock in your initial interest rate.

Each year, after your initial fixed-rate period, your loan margin is added to the index value to determine your new interest rate. Your monthly payment changes as the index changes each year, subject to annual interest rate caps and a life of loan interest rate floor and ceiling.

With an Adjustable Rate Mortgage at Hatboro Federal Savings, you will enjoy the security of interest rate protection with annual interest rate caps and a life of loan interest rate floor and ceiling.

For more detailed information about how ARMs work, view the Consumer Financial Protection Bureau’s CHARM Booklet and our Adjustable Rate Mortgage program disclosures below:

ARMs – CHARM Booklet

5/1 ARM Loan Program Disclosure

7/1 ARM Loan Program Disclosure

10/1 ARM Loan Program Disclosure

For more information please
call the Lending Office

215.675.4424

Loan Officer, Tim Nogowski

tnogowski@hatborofed.com NMLS #73964

(1) Adjustable Rate Mortgage (ARM) – Annual Percentage Rate (APR) as of the publication date and is subject to change. Since an ARM is a variable rate loan, the APR and payments on the ARM may increase or decrease after consummation of the loan, subject to annual interest rate caps and a life of loan interest rate ceiling and floor. APR is based upon a principal loan amount of $100,000 with a 20% down payment and a 30 year term. Loan payments do not include taxes or insurance, if applicable, the actual payment obligation will be greater. First lien, owner-occupied, purchase transactions only. Homeowners insurance required. Loans up to $766,550. A minimum down payment equal to 20% of the purchase price is required. An escrow account is required for all mortgage loans with a Loan to Value Ratio (LTV) of over 75%. The maximum LTV allowed is 80%. If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and insurance premiums. Loans up to $2 million are also available, subject to other rates and terms. Other conditions may apply. Subject to credit approval, income verification and collateral valuation. Offer subject to change without notice. MNLS # 662952.

(2) Adjustable Terms – After the initial 5/7/10 year fixed rate period, the Interest Rate is variable and can increase or decrease by no more than 2.00% (the “Annual Rate Cap”) each year after the initial fixed-rate period subject to a life of loan Interest Rate Ceiling and Floor discussed below. The interest rate ceiling is the initial interest rate on the ARM, plus 6.00% (the “Interest Rate Ceiling”). The interest rate floor is the initial interest rate on the ARM (the “Interest Rate Floor”). The annual rate adjustment is based on the Index Rate (equal to the Weekly Average Yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the Board of Governors of the Federal Reserve System) plus 2.75% (the “Margin”). The Index Rate is currently 4.22%. Since the index in the future is unknown, the first adjusted payments shown below are based on the current index plus the margin (fully indexed rate) as of 6.97%. The monthly payments during the initial fixed rate period would be $623.87 (5/1 ARM); $623.87 (7/1 ARM); $623.87 (10/1 ARM). Payments for the remaining life of the loan would be $658.88 (5/1 ARM); $656.89 (7/1 ARM); $653.67 (10/1 ARM). For the purposes of this example, the ARM rate assumes no increase in the Index after the initial 5/7/10 year fixed period and estimated payments do not include real estate taxes and insurance premiums.