If you’re refinancing a home and want lower payments than a fixed rate mortgage may provide, consider an adjustable rate mortgage, or ARM, from PNC.

With an ARM, you’ll start out with a low rate and after a few years, your rate will reset with a new rate that can be either higher or lower depending on market conditions at the time the adjustment occurs. After the first rate adjustment, your interest rate can change on a regular basis until you pay off your mortgage.

• For homeowners with a good credit history
• Ideal if you’re expecting an increase in income, or don’t plan to own the home for a long period
• Adjustable rate loans are available in periods of 3, 5, 7, and 10 years during which the interest rate remains unchanged, followed by an adjustment period in which the interest rate may increase or decrease on an annual or semi-annual basis, dependent upon the product, resulting in a change in your monthly payment amount.
• Can be used for both primary and secondary homes, investment properties too

Is there a maximum interest rate for ARM?

Yes, adjustable rate mortgages have three rate caps that restrict how much your interest rate can change.  One cap restricts the amount the interest rate can change at the first adjustment, the second restricts the amount the interest rate can change every adjustment period after the first adjustment period, and the third cap restricts the maximum interest rate you can pay for as long as you have the mortgage.

Notice Regarding Adjustable Rate Mortagages: Interest is fixed for a set period of time, and adjusts periodically thereafter. At the end of the fixed rate period, the interest and monthly payments may increase.

If you’re looking to refinance a loan over $548,250, you’ll most likely need a special type of mortgage. With a jumbo loan from PNC, you can finance up to $5 million.

• Standard fixed or adjustable rate terms
• Limited Cash-out/Rate-Term Refinance
• Fixed loan terms between 15 and 30 years
• Finance between $548,250 and $5 million
• Adjustable rate loans are available in periods of 3, 5, 7, and 10 years during which the interest rate remains unchanged, followed by an adjustment period in which the interest rate may increase or decrease on an annual or semi-annual basis, dependent upon the product, resulting in a change in your monthly payment amount.
• Can be used for primary or second home refinances
• Borrower will generally need assets beyond those needed for the loan transaction

These government-backed loans allow qualified buyers to refinance a home with more flexible credit requirements.

• Standard fixed or adjustable rate loans are available
• Can qualify to refinance an existing mortgage up to 97.75% loan-to-value, or if you’re eligible for an FHA Streamline Refinance, there is no loan-to-value maximum and an appraisal may not be necessary. Loan amounts are subject to FHA county loan limits.

If you’re Active Military, a Veteran, Reservist or National Guard member, you may be eligible for a VA Home loan from PNC.

• Fixed and adjustable rate terms are available
• 100% financing available
• Loan terms range between 15 and 30 years
• Guaranteed by the Department of Veterans Affairs
• No private mortgage insurance required (VA Funding Fee is required)