1- Year Arm $300 origination fee, adjusts annually to 1-Year Constant Maturity Treasury (CMT) + 2.75%, 2/6 caps.
3/1 Year Arm $300 origination fee, interest rate fixed for three years and then adjusts annually to 1-Year CMT + 2.75%, 2/6 caps.
5/1 Year Arm $300 origination fee, interest rate fixed for five years and then adjusts annually to 1-Year CMT + 2.75%, 2/6 caps, Adjustable-rate loans, commonly known as ARMs, are loans in which the interest rate can change during the life of the loan.  Clay County Savings Bank offers 1-year, 3/1 and 5/1 ARMs.   The interest rate on the 1-year ARM adjusts annually.  The interest rate on the 3/1 and 5/1 ARM is fixed for the first 3 or 5 years, respectively, and then adjusts annually thereafter.  At the end of the initial period and at every adjustment period, for owner-occupied home loans, the interest will adjust to 275 basis points (the “margin”) over the weekly average yield on U.S. Treasury securities adjusted to a constant maturity of one year (the “index”).

Adjustable-rate loans, commonly known as ARMs, are loans in which the interest rate can change during the life of the loan.  Clay County Savings Bank offers 1-year, 3/1 and 5/1 ARMs.   The interest rate on the 1-year ARM adjusts annually.  The interest rate on the 3/1 and 5/1 ARM is fixed for the first 3 or 5 years, respectively, and then adjusts annually thereafter.  At the end of the initial period and at every adjustment period, for owner-occupied home loans, the interest will adjust to 2.75% (the “margin”) over the weekly average yield on U.S. Treasury securities adjusted to a constant maturity of one year (the “index”).

Why choose an ARM loan?  ARMs usually start with a lower interest rate and a lower monthly payment than a fixed-rate loan.  The lower rate (and lower monthly payment) may allow for a higher loan amount.  ARMs are popular for those who do not plan on living in their home for the entire term of the loan.  This will allow you to capitalize on the initial lower payments.  You may also want to consider an ARM, if you plan on your income increasing, which will offset the impact of potentially higher payments should the interest rate increase.

If you choose an ARM loan, you need to remember that the interest rate can change during the life of the loan, which would mean that your monthly payment would increase or decrease.  However, Clay County Savings Bank has rate caps (“ceilings” and “floors”) on all ARMs for each adjustment period and over the life of the loan.  Typically, for owner-occupied home loans, the interest rate may not increase or decrease more than 2.00% during any change or adjustment date and no more than 6.00% from the initial interest rate during the lifetime of the loan.

Jumbo Loans
Jumbo loans are loans secured by personal residences that exceed $424,100. Clay County Savings Bank offers 1-year, 3/1 and 5/1 ARMs and a 15-year, fixed-rate loan only. Please call or contact our office for current interest rates.