ARM Disclosures

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Scroll down this webpage to view disclosures for each of Tri City's ARM loan solutions.

3/6 Adjustable Rate Mortgage (ARM) Loan Disclosure

This disclosure describes the features of the Adjustable Rate Mortgage (ARM) program you are considering at Tri City National Bank. Information on other ARM programs at the Bank are available on request.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your interest rate will be based on an index rate plus a margin.
Your payment will be based on the interest rate, loan balance and loan term.
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The initial interest rate is not based upon the index used to make later adjustments. Ask us for the current initial rates on our adjustable rate mortgages.
Your regular monthly payments will consist of principal and interest, including any amounts past due or other accrued charges.

HOW YOUR INTEREST RATE CAN CHANGE

Your interest rate can change after the initial three years and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8 of 1 percent.
Your interest rate cannot increase or decrease more than 2 percentage points at the first interest rate adjustment and by no more 1 percentage point at the time of each subsequent interest rate adjustment.
Your interest rate cannot increase more than the initial rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

Your payment can change every six months based on changes in the interest rate.
Your monthly payment can increase or decrease substantially based on semi-annual changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

30 Year Amortization Example

For a $10,000.00 loan with an initial interest rate of 6.000% in effect December 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points to 11.000%. The monthly payment can rise from a first year payment of $59.96 to a maximum of $92.51 in the fifth year.

To see what your payments would be, divide your mortgage amount by $10,000.00; then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000.00 would be: $60,000.00 divided by $10,000.00 equals 6; 6 x $59.96 = $359.76 per month.

OTHER INFORMATION

Loan terms for less than 30 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

5/6 Adjustable Rate Mortgage (ARM) Loan Disclosure

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your interest rate will be based on an index rate plus a margin.
Your payment will be based on the interest rate, loan balance and loan term.
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The initial interest rate is not based upon the index used to make later adjustments. Ask us for the current initial rates on our adjustable rate mortgages.
Your regular monthly payments will consist of principal and interest, including any amounts past due or other accrued charges.

HOW YOUR INTEREST RATE CAN CHANGE

Your interest rate can change after the initial five years and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8 of 1 percent.
Your interest rate cannot increase or decrease more than 2 percentage points at the first interest rate adjustment and by no more 1 percentage point at the time of each subsequent interest rate adjustment.
Your interest rate cannot increase more than the initial rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

Your payment can change every six months based on changes in the interest rate.
Your monthly payment can increase or decrease substantially based on semi-annual changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

30 Year Amortization Example

For a $10,000.00 loan with an initial interest rate of 6.625% in effect January 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points to 11.625%. The monthly payment can rise from a first year payment of $64.03 to a maximum of $95.72 in the eighth year.

OTHER INFORMATION

Loan terms for less than 30 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

7/6 Adjustable Rate Mortgage (ARM) Loan Disclosure

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your interest rate will be based on an index rate plus a margin.
Your payment will be based on the interest rate, loan balance and loan term.
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The initial interest rate is not based upon the index used to make later adjustments. Ask us for the current initial rates on our adjustable rate mortgages.
Your regular monthly payments will consist of principal and interest, including any amounts past due or other accrued charges.

HOW YOUR INTEREST RATE CAN CHANGE

Your interest rate can change after the initial seven years and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8 of 1 percent.
Your interest rate cannot increase or decrease more than 5 percentage points at the first interest rate adjustment and by no more 1 percentage point at the time of each subsequent interest rate adjustment.
Your interest rate cannot increase more than the initial rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

Your payment can change every six months based on changes in the interest rate.
Your monthly payment can increase or decrease substantially based on semi-annual changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

30 Year Amortization Example

For a $10,000.00 loan with an initial interest rate of 6.875% in effect January 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points to 11.875%. The monthly payment can rise from a first year payment of $65.69 to a maximum of $96.38 in the eighth year.

OTHER INFORMATION

Loan terms for less than 30 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

5/6 Adjustable Rate Mortgage (ARM) Home Equity Loan – 1st Lien

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your interest rate will be based on an index rate plus a margin.
Your payment will be based on the interest rate, loan balance and loan term.
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The initial interest rate is not based upon the index used to make later adjustments. Ask us for the current initial rates on our adjustable rate mortgages.
Your regular monthly payments will consist of principal and interest, including any amounts past due or other accrued charges.

HOW YOUR INTEREST RATE CAN CHANGE

Your interest rate can change after the initial five years and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8 of 1 percent.
Your interest rate cannot increase or decrease more than 2 percentage points at the first interest rate adjustment and by no more 1 percentage point at the time of each subsequent interest rate adjustment.
Your interest rate cannot increase more than the initial rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

Your payment can change after the initial five years and then every six months based on changes in the interest rate.
Your monthly payment can increase or decrease substantially based on semi-annual changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

20 Year Amortization Example

For example, on a $10,000.00 20-year loan with an initial interest rate of 6.750% in effect December 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points, to 11.750%. The monthly payment can rise from a first year payment of $76.04 to a maximum of $100.95 in the seventh year.

OTHER INFORMATION

Loan terms for less than 20 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

5/6 Adjustable Rate Mortgage (ARM) Home Equity Loan – 2nd Lien

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your interest rate will be based on an index rate plus a margin.
Your payment will be based on the interest rate, loan balance and loan term.
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The initial interest rate is not based upon the index used to make later adjustments. Ask us for the current initial rates on our adjustable rate mortgages.
Your regular monthly payments will consist of principal and interest, including any amounts past due or other accrued charges.

HOW YOUR INTEREST RATE CAN CHANGE

Your interest rate can change after the initial five years and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8 of 1 percent.
Your interest rate cannot increase or decrease more than 2 percentage points at the first interest rate adjustment and by no more 1 percentage point at the time of each subsequent interest rate adjustment.
Your interest rate cannot increase more than the initial rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

Your payment can change after the initial five years and then every six months based on changes in the interest rate.
Your monthly payment can increase or decrease substantially based on semi-annual changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

15 Year Amortization Example

For example, on a $10,000.00 15-year loan with an initial interest rate of 7.125% in effect December 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points, to 12.125%. The monthly payment can rise from a first year payment of $90.58 to a maximum of $110.76 in the seventh year.

OTHER INFORMATION

Loan terms for less than 15 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

1/2/6 Construction/Permanent Adjustable Rate Mortgage (ARM) Loan Disclosure

This disclosure describes the features of the Construction/Permanent Adjustable Rate Mortgage (ARM) program you are considering at Tri City National Bank. Information on other Construction/Permanent ARM programs at the Bank are available on request.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your loan offers monthly “interest-only” payments during the period known as the “construction period,” and monthly principal and interest payments during the period known as the “permanent period.” The “construction period” shall end in 12 months, at which time the loan converts to the “permanent period” and the outstanding principal balance of the loan is amortized into monthly principal and interest payments to be paid over a term of up to 29 years.
Your interest rate will be based on an index rate plus a margin.
During the construction period, your monthly payments will be based on the interest rate, loan balance and the number of days in the billing cycle, plus any amounts past due or other accrued charges.
During the permanent period, your monthly payment will be based on the interest rate, loan balance, and loan term, plus any amounts past due or other accrued charges
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The interest rate of the construction period and initial interest rate of the permanent period are not based upon the index used to make later adjustments. Ask us for the current initial interest rate on our adjustable rate construction/permanent mortgage.

HOW YOUR INTEREST RATE CAN CHANGE

During the construction period, your interest rate cannot change.
At the end of the construction period, your interest rate can change.
During the permanent period, your interest rate can change after the initial two years, and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8th of 1 percent.
Your interest rate cannot increase or decrease more than 2 percentage points at the first interest rate adjustment of the permanent period and by no more than 1 percentage point at the time of each subsequent interest rate adjustment, except for the initial adjustment after the construction period which has no change limit.
Your interest rate cannot increase more than the initial permanent period rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

During the construction period, your interest-only payment can change each month based on the outstanding principal loan balance and the number of days in the billing cycle.
At the end of the construction period, your principal and interest payment can change.
During the permanent period, your principal and interest payment can change every six months after the initial two years of the permanent period based on changes in the interest rate.
During the permanent period, your monthly payment can increase or decrease substantially every six months based on changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

30 Year Amortization Example

For a $10,000.00 loan with a construction period interest rate of 5.99% and initial permanent phase rate of 6.125% in effect December 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points from the initial permanent period rate to 11.125%. The monthly payment can rise from a construction period interest-only payment of $49.92, to an initial permanent period principal and interest payment of $61.50, to a maximum principal and interest payment of $94.62 in the fifth year. For purposes of this example, assume that the full 12-month construction period was needed, that principal and interest payments did not begin until the month after the ending of the construction period, and that the full $10,000 is being advanced at time of closing.

To see what your payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 equals 6; 6 x $49.92 = $299.52 per month during the construction period; or 6 x $61.50 = $369.00 per month during the permanent period.

OTHER INFORMATION

Loan terms for less than 30 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

1/4/6 Construction/Permanent Adjustable Rate Mortgage (ARM) Loan Disclosure

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your loan offers monthly “interest-only” payments during the period known as the “construction period,” and monthly principal and interest payments during the period known as the “permanent period.” The “construction period” shall end in 12 months, at which time the loan converts to the “permanent period” and the outstanding principal balance of the loan is amortized into monthly principal and interest payments to be paid over a term of up to 29 years.
Your interest rate will be based on an index rate plus a margin.
During the construction period, your monthly payments will be based on the interest rate, loan balance and the number of days in the billing cycle, plus any amounts past due or other accrued charges.
During the permanent period, your monthly payment will be based on the interest rate, loan balance, and loan term, plus any amounts past due or other accrued charges
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The interest rate of the construction period and initial interest rate of the permanent period are not based upon the index used to make later adjustments. Ask us for the current initial interest rate on our adjustable rate construction/permanent mortgage.

HOW YOUR INTEREST RATE CAN CHANGE

During the construction period, your interest rate cannot change.
At the end of the construction period, your interest rate can change.
During the permanent period, your interest rate can change after the initial four years, and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8th of 1 percent.
Your interest rate cannot increase or decrease more than 2 percentage points at the first interest rate adjustment of the permanent period and by no more than 1 percentage point at the time of each subsequent interest rate adjustment, except for the initial adjustment after the construction period which has no change limit.
Your interest rate cannot increase more than the initial permanent period rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

During the construction period, your interest-only payment can change each month based on the outstanding principal loan balance and the number of days in the billing cycle.
At the end of the construction period, your principal and interest payment can change.
During the permanent period, your principal and interest payment can change every six months after the initial four years of the permanent period based on changes in the interest rate.
During the permanent period, your monthly payment can increase or decrease substantially every six months based on changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

30 Year Amortization Example

For a $10,000.00 loan with a construction period interest rate of 5.99% and initial permanent phase rate of 6.500% in effect December 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points from the initial permanent period rate to 11.500%. The monthly payment can rise from a construction period interest-only payment of $49.92, to an initial permanent period principal and interest payment of $63.92, to a maximum principal and interest payment of $95.80 in the seventh year. For purposes of this example, assume that the full 12-month construction period was needed, that principal and interest payments did not begin until the month after the ending of the construction period, and that the full $10,000 is being advanced at time of closing.

To see what your payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 equals 6; 6 x $49.92 = $299.52 per month during the construction period; or 6 x $63.92 = $383.52 per month during the permanent period.

OTHER INFORMATION

Loan terms for less than 30 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages

1/6/6 Construction/Permanent Adjustable Rate Mortgage (ARM) Loan Disclosure

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED

Your loan offers monthly “interest-only” payments during the period known as the “construction period,” and monthly principal and interest payments during the period known as the “permanent period.” The “construction period” shall end in 12 months, at which time the loan converts to the “permanent period” and the outstanding principal balance of the loan is amortized into monthly principal and interest payments to be paid over a term of up to 29 years.
Your interest rate will be based on an index rate plus a margin.
During the construction period, your monthly payments will be based on the interest rate, loan balance and the number of days in the billing cycle, plus any amounts past due or other accrued charges.
During the permanent period, your monthly payment will be based on the interest rate, loan balance, and loan term, plus any amounts past due or other accrued charges
Your payment will be based on the index plus our margin. The index is the 30-day compounded average of SOFR (Secured Overnight Financing Rate). Ask us for our current interest rate and margin.
Information about the index is published by the Federal Reserve Bank of New York (newyorkfed.org).
Your interest rate will equal the index rate plus our margin unless your interest rate “caps” limit the amount of change in the interest rate.
The interest rate of the construction period and initial interest rate of the permanent period are not based upon the index used to make later adjustments. Ask us for the current initial interest rate on our adjustable rate construction/permanent mortgage.

HOW YOUR INTEREST RATE CAN CHANGE

During the construction period, your interest rate cannot change.
At the end of the construction period, your interest rate can change.
During the permanent period, your interest rate can change after the initial six years, and then every six months thereafter.
Your interest rate will be rounded to the nearest 1/8th of 1 percent.
Your interest rate cannot increase or decrease more than 5 percentage points at the first interest rate adjustment of the permanent period and by no more than 1 percentage point at the time of each subsequent interest rate adjustment, except for the initial adjustment after the construction period which has no change limit.
Your interest rate cannot increase more than the initial permanent period rate plus 5 percentage points over the term of the loan.

HOW YOUR PAYMENT CAN CHANGE

During the construction period, your interest-only payment can change each month based on the outstanding principal loan balance and the number of days in the billing cycle.
At the end of the construction period, your principal and interest payment can change.
During the permanent period, your principal and interest payment can change every six months after the initial six years of the permanent period based on changes in the interest rate.
During the permanent period, your monthly payment can increase or decrease substantially every six months based on changes in the interest rate.
You will be notified at least 210, but no more than 240, days before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. You will be notified at least 25-60, but no more than 120, days before the first payment at the adjusted level is due after any interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.

30 Year Amortization Example

For a $10,000.00 loan with a construction period interest rate of 5.99% and initial permanent phase rate of 6.875% in effect December 2024, the maximum amount that the interest rate can increase under this program is 5.00 percentage points from the initial permanent period rate to 11.875%. The monthly payment can rise from a construction period interest-only payment of $49.92, to an initial permanent period principal and interest payment of $66.38, to a maximum principal and interest payment of $97.40 in the eighth year. For purposes of this example, assume that the full 12-month construction period was needed, that principal and interest payments did not begin until the month after the ending of the construction period, and that the full $10,000 is being advanced at time of closing.

To see what your payments would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 equals 6; 6 x $49.92 = $299.52 per month during the construction period; or 6 x $66.38 = $398.28 per month during the permanent period.

OTHER INFORMATION

Loan terms for less than 30 years are also available. Contact your lender for more information.
This obligation does not have a demand feature.

Consumer Handbook on Adjustable Rate Mortgages