5/1 Adjustable Rate Mortgage (ARM)

No points, no application fees and low closing costs!

Low Rates

Rates on 30-year fixed mortgages are near an all-time low. But did you know that the same is true on adjustable rate mortgages (ARMs)?

The rate on a 5/1 ARM from Lake Shore Savings can be more than 1% lower than a 30-year fixed rate, saving you thousands of dollars in interest on your mortgage!

Save Money

Adjustable Rate Mortgages can be used for refinancing an existing mortgage or purchasing a new home. ARMs start off with a fixed interest rate and monthly payment, but then adjust to reflect changes in market interest rates. ARMs are typically a good choice for those seeking lower starting interest rates and lower initial monthly payments.

With the 5/1 ARM your interest rate will be fixed for the first five years. After 5 years, the rate will increase/decrease annually based on the 1-Year Treasury Bill it is tied to. You can rest easy knowing that your rate will never increase more than 2% a year or 6% over the entire 30 years.

No Points, No Application Fees, Low Closing Costs

At Lake Shore Savings you can be guaranteed that you are getting the best rate without any additional points or fees. The only charges you pay at closing are the usual 3rd party costs, and since we've negotiated with these 3rd parties to get you the best rate, you'll save money!

5/1 ARM Advantages

Save three ways with a 5/1 Adjustable Rate Mortgage; lower monthly payments, less money going towards interest on your mortgage and a lower loan balance at the end of 5 years!

The following example* compares a 30-year fixed rate mortgage for $150,000 with an interest rate of 6.00% and a 5/1 ARM, which is fixed for the first 5 years at 5.00% (4.053% Annual Percentage Rate) and then has annual interest rate adjustments for the remaining 25 years:

Low Monthly Payments
The monthly payment for a 30-year fixed rate mortgage is $899.33. The monthly payment for a 5/1 ARM is $805.23, which is a savings of $94.10 per month for the borrower.

Less Interest Paid
Interest paid by the borrower at the end of 5 years equals $43,541 and $36,057 respectively, which is a savings of $7,484.

Lower Loan Balance
The loan balance at the end of 5 years is reduced to $139,581 for the fixed rate mortgage, as compared to $137, 743 for the 5/1 ARM.

Current Rates

How to Apply

*5/1 ARM interest rates may vary and are subject to change without notice. The Annual Percentage Rate (APR) used in the example assumes a 20% down payment on the purchase of an owner occupied one unit dwelling, with no secondary financing. The APR does not include all closing costs. The interest rate for Adjustable Rate Mortgage (ARM) loans may increase after consummation. The Monthly Payment does not reflect amounts to be paid into escrow, such as taxes or insurance. All loans are subject to credit approval. Adjustable Rate Mortgages Programs have initial, annual, and lifetime interest rate caps.