Bank of Tennessee offers a variety of adjustable rate mortgages, also called ARMs. These are popular mortgage choices because payments and interest rates initially may be lower, which means more purchasing power for you.

With an ARM's lower rate and monthly payments, you may qualify for a higher mortgage loan amount. Consider an adjustable rate mortgage if you plan to be in your home a relatively short time and expect mortgage rates to decrease after your ARM period is complete.

When you apply for an adjustable rate mortgage, keep the following information in mind:

• The interest rate can change during the life of the loan, which would mean that your monthly payment would change
• ARM interest rates increase at adjustment periods. You may have an increase in your monthly mortgage payment after each adjustment period
• Your ARM will have a periodic cap (the annual allowed increase) and a lifetime cap (the maximum interest rate or maximum number of increases allowed)

Bank of Tennessee Mortgage Division offers ARMs with initial terms ranging from 1 to 10 years. Talk to a Bank of Tennessee Mortgage Banker at (866) 378.9500 for more information about adjustable rate mortgages.

*All loans subject to credit approval. Bank of Tennessee is an Equal Housing Lender