Initial Fixed Rate:

Choose the initial rate that best fits with your investment strategy. The PHL ARM combines the features of fixed rate and adjustable rate loans. It starts off with a stable interest rate for several years, after which it converts to an ARM, with the rate being adjusted every year for the remaining life of the loan.

Available Initial Fixed Rate Periods:

• 3/1 ARM
• 5/1 ARM
• 7/1 ARM
• 10/1 ARM

The initial fixed rate for a PHL ARM can be as much as 2% lower than the rate for a 30-year fixed!

Adjustment Periods:

Adjustable rate mortgages are often referred to as 3/1, 5/1, and so on. The first number is the length of the fixed term – usually 1, 3, 5, 7, or 10 years. The second is the adjustment interval that applies when the fixed term is over. For example, with a 7/1 ARM, you pay a fixed rate of interest for seven years. At the end of that 7-year period, the interest rate will adjust annually up or down according to market conditions.

You should consider an ARM if you:

• Are planning to be in your home for less than ten years.
• Want the lowest interest rate possible and are willing to tolerate some risk to achieve it.
• Would like the peace of mind that comes with a consistent monthly payment for three or more years, with an interest rate that’s only slightly higher than anannually adjusted ARM.
• Are planning to sell your home or refinance shortly after the fixed term is over.

Important Note:

The information and self-help tools provided are for independent use and do not constitute investment advice. We do not guarantee loan eligibility or accuracy concerning individual circumstances. All examples are hypothetical and for illustrative purposes. We recommend consulting one of our experienced loan officers for a comprehensive loan eligibility analysis, along with a personalized rate and payment estimate.