Angela Hagedorn

Dec 07 2015

Understanding Adjustable Rate Mortgages (ARMs)

Understanding Adjustable Rate Mortgages (ARMs)

Watch Angela’s video on Understanding Adjustable Rate Mortgages (ARM)s on YouTube:

If you know you are going to be in your home temporarily, an Adjustable Rate Mortgage is a great product. You’ll get the benefit of a lower interest rate for the time you’re living in the home.

Adjustable Rate Mortgages come in terms of  1, 3, 5, 7, and 10 years. This means your initial rate is locked in for however long your term is. For example, a 5-year ARM means your initial rate is locked in for 5 years. After 5 years, your rate is subject to adjustment. The index is what determines your rate and the caps determine how much your rate can adjust.

Entering into an Adjustable Rate Mortgage, you’ll want to make sure you know the terms of the loan, what the caps are, what the maximum rates are, and when the rate is going to adjust.

To learn more about ARMs, visit to speak with a mortgage team member.

Angela Hagedorn

About Angela Hagedorn

Angela Hagedorn is a Mortgage Lender at Hills Bank’s Cedar Rapids location on Williams Blvd SW. She has been at Hills Bank since 2014 helping customers with their home buying needs. Her banking career extends back to the 90’s and can be heard from the SW corridor cheering on the Cyclones! Her favorite title is “Mom” as the bulk of Angela’s spare time is spent enjoying her teenagers. Contact Angela at

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