Quick Clicks
What's New
Traveling? Let us know so your credit and debit cards stay active.
Learn more...

Veridian Community Events.
Learn more...

Join Veridian at the retirement planning seminar.
Learn more...

Do you have health insurance?
Learn more...

Deposit checks directly from your phone with our mobile app.
Learn more...

Adjustable Rate (ARM)
With an adjustable-rate mortgage (ARM), the interest rate you pay is adjusted periodically to keep it in line with the changing market rates. This means when interest rates go up, your monthly mortgage payment may also increase. On the other hand, when interest rates go down, your monthly mortgage payments may decrease. The ARM is attractive because it may initially offer a lower interest rate than fixed rate mortgages. The drawback to this loan is the monthly payments may increase when interest rates rise.

You may want to consider an ARM if:

  • Your income will rise enough in the coming years to comfortably handle any increase in payments
  • You plan to move prior to your ARM repricing and therefore are not concerned about possible interest rate increases
  • You need a lower initial rate to afford the home you want

Veridian's ARM product:

  • Will adjust annually after the initial period - five, seven, or ten years
  • Has a yearly cap on interest rate increases of two percent, and a lifetime rate cap of six percent
  • The interest rate changes on an ARM are always tied to a financial index. Our index is the one-year LIBOR
  • An ARM will always have a margin that is added to the index to determine the adjusted interest rate. Our margin is 2.75 percent

Find a Mortgage Loan Officer in your area to have all your mortgage questions answered by an expert!

contact us

Visit our Mortgage Center
Calculate your payment
Mortgage Loan Types