Metuchen Savings Bank's standard fixed period ARMs are tied to the one year Treasury securities index and offer a stable rate for the first three, five, seven, or ten years. At the end of the fixed period, the interest rate will adjust annually. Initial rate caps and subsequent annual adjustments are capped at 2 percent with a lifetime cap of 5 percent. Our mortgages have a desirable convertible feature that allows you the option to convert to a fixed rate mortgage (FRM) after the initial fixed period. Lower rate alternative to 30 year fixed rate.
5/1, 7/1, 10/1 Adjustable Rate Mortgage
Fixed period adjustable rate mortgages have an initial fixed rate period, after which the rate may adjust either upwards or downwards annually, based on the cap structure and the index chosen.