Adjustable Rate Mortgage (ARM)

Powerful savings for you:

• Immediate savings–lower monthly mortgage payments put more money in your pocket to use for investments and other expenses.
• Longer-term savings–potentially shave thousands of dollars off your total interest paid over the life of the loan.

Typically, an ARM works best for someone who:

• Desires lower initial monthly payments
• Appreciates the benefits of our lowest possible rate
• Sees the opportunity to put more money into savings or retirement as a result of lower mortgage payments

Product Details:
You can apply for either a 10-year* or a 15-year** mortgage at this low rate. This low initial rate, combined with a predictable lifetime interest rate change cap, adds up to a very attractive loan option for many mortgage customers.

Which Adjustable Rate Mortgage (ARM) is best for you?
This chart highlights the major differences between our 10-year and 15-year loans. We are using a sample loan amount for illustration and comparison purposes.

	1-year ARM with 10-Yr term with auto-pay*	1-year ARM with 15-Yr term with auto-pay**
Initial monthly payment example based upon a $150,000 mortgage	$1,338.62	$922.70
First year rate and APR	1.375% (1.422% APR)	1.375% (1.407% APR)
Annual interest rate change cap	0.500%	0.750%
Lifetime interest rate change cap over the first year rate	4.000%	5.000%

Disclaimers

*10-year term
Adjustable-Rate Mortgage (ARM) example: The initial monthly payment on a 10-year $150,000 1-year ARM at 1.375% and 80% loan-to-value (LTV) is $1,338.62 with zero (0) points due at closing.   The Annual Percentage Rate (APR) is 1.422%. Example payment does not include taxes and insurance, so the actual total payments will be higher. The payment amount will vary depending upon loan amount. The interest rate is variable and changes will be determined based upon an Index plus a Margin.  Principal and interest payment and rate are subject to increase or decrease annually starting after the first year.   During the term of the loan the annual interest rate change cap is 0.500%, with a lifetime change cap of 4.000% over the first year rate.  Loan offer is subject to credit approval.  Requires auto-payment from a Merchants Bank checking account. Advertised rate and APR are as of May 1, 2013 and subject to change without notice.

**15-year term
Adjustable-Rate Mortgage (ARM) example: The initial monthly payment on a 15-year $150,000 1-year ARM at 1.375% and 80% loan-to-value (LTV) is $922.70 with zero (0) points due at closing. The Annual Percentage Rate (APR) is 1.407%.  Example payment does not include taxes and insurance, so the actual total payments will be higher. The payment amount will vary depending upon loan amount. The interest rate is variable and changes will be determined based upon an Index plus a Margin.  Principal and interest payment and rate are subject to increase or decrease annually starting after the first year.   During the term of the loan the annual interest rate change cap is 0.750%, with a lifetime change cap of 5.000% over the first year rate.  Loan offer is subject to credit approval.  Requires auto-payment from a Merchants Bank checking account. Advertised rate and APR are as of May 1, 2013 and subject to change without notice.