How It Works

How It Works

Adjustment Period

With most ARMs, the interest rate and monthly payment are fixed for an initial time period, such as one year, three years, five years or seven years. After the initial fixed period, the interest rate can change every year. For example, one of Bank SNB’s most popular adjustable rate mortgages is a seven-year (7/1) ARM. The interest rate will not change for the first seven years (the initial adjustment period) but can change every year after.

Index

Our ARM interest rates change in relation to an index rate. Using an index to determine future rate adjustments gives you assurance that rate adjustments will be based on actual market conditions at the time of the adjustment. If the index rate moves up, so does your mortgage interest rate, meaning you will probably have a higher monthly payment. On the other hand, if the index rate goes down, your monthly payment may decrease. The current value of most indexes is published weekly in the Wall Street Journal.

Margin

To determine the interest rate on an ARM, we'll add a pre-disclosed amount to the index called the "margin." If you're still shopping, comparing one lender's margin to another's can be more important than comparing the initial interest rate, since it will be used to calculate the interest rate you will pay in the future.

Interest-Rate Caps

An interest-rate cap places a limit on the amount your interest rate can increase or decrease. There are two types of caps:

  1. Periodic (or adjustment) caps limit the interest rate increase or decrease from one adjustment period to the next.
  2. Overall (or lifetime) caps limit the interest rate increase over the life of the loan.

Interest rate caps are very important because the future is unpredictable. All Bank SNB ARMs have both adjustment and lifetime caps.

Selecting a mortgage may be the most important financial decision you will make, and you deserve all the information you need to make the right decision.

Talk with one of our loan officers to determine the mortgage that’s right for you.

The interest rates, annual percentage rates and points shown below are subject to change without notice.

Senior Vice President, Mortgage Loan Officer
NMLS #
663412
Oklahoma City and Edmond Areas
405.427.4000
Vice President, Mortgage Loan Officer
NMLS #
210604
Tulsa Area
918.523.3600
Vice President, Mortgage Loan Officer
NMLS #
1019199
Stillwater Area
405.372.2234
Vice President, Mortgage Loan Officer
NMLS #
663438
Oklahoma City and Edmond Areas
405.427.4000
Mortgage Loan Officer
NMLS #
1253940
Stillwater Area
405.372.2234
Senior Vice President, Mortgage Sales Manager
NMLS #
595241
All Texas Markets
512.314.6700
Vice President, Mortgage Loan Officer
NMLS #
1056532
San Antonio
210.442.6143
Vice President, Mortgage Loan Officer
NMLS #
641933
Wichita and Hutchinson Areas
316.315.1600
Vice President, Mortgage Loan Officer
NMLS #
1267440
All Colorado Markets
303.754.5384