With an adjustable-rate mortgage (ARM), your loan will have an initial fixed-rate period. After the fixed-rate period, your interest rate will adjust up or down according to market rates at the time of reset. Lifetime rate cap is 5%, yearly adjustment cap is 1%, first year rate cap is 1%. As of 10/5/2016 the initial payment on a 30-year, $200,000.00, 5-year Adjustable-Rate Loan at 3.625% interest and 80% loan-to-value (LTV) is $916.66 with 0 points due at closing. The Annual Percentage Rate (APR) is 2.936%. After the initial 60 payments (5 years) at 3.625% interest with payments of $916.66, the rate and payments may adjust annually to 4.625% (estimated) with payments of $1,017.12 (estimated) for the remainder of the loans term (payments 61 – 360 [years 6-30]). After the initial fixed-rate period based on the initial interest rate and interest rate caps disclosed above, the maximum first adjusted rate for this loan will never be more than 4.625%, with a maximum first payment of $1,017.12. The fully indexed rate for this loan is 8.625%, the maximum principal and interest payment for this loan will not exceed $1,434.46. Payment calculations above do not include taxes and insurance premium, the actual payment amounts will be greater. Rate is variable and subject to change after 5 years. Accuracy is not guaranteed and products may not be available for your situation.