Adjustable Rate Mortgages

Adjustable-rate mortgages (ARMs) offer lower initial interest rates than fixed-rate mortgages. But after an initial period, those rates are adjusted periodically to follow the market. Monthly payments on an ARM can go up or down at each adjustment period, as market conditions change. To protect you in times of extreme rate fluctuation, there are ceilings, or "rate caps", on the amount the interest rate can rise or fall at each adjustment period. Chase also includes a maximum interest rate for your ARM loan, known as the "lifetime cap".

You might consider an adjustable-rate mortgage if you:   . Plan to stay in your home for only a short time . Want lower initial payments . Have a small income but expect to earn more in the future . Are confident you can handle future rate increases

1, 3, 5, 7 and 10 Year ARMs

These mortgages maintain an initial interest rate for 1, 3, 5, 7, or 10 years, and can be adjusted every year thereafter based on the applicable index.