Adjustable Rate Mortgage (ARM)
Start with a lower initial interest rate for a fixed period before it adjusts to match the market.
Check Adjustable Rate Mortgage (ARM) RatesWhat is a Adjustable Rate Mortgage (ARM)?
An Adjustable-Rate Mortgage (ARM) features an interest rate that changes periodically after an initial fixed period. For example, a "5/1 ARM" has a fixed rate for the first 5 years, after which the rate adjusts annually based on an index.
Because lenders take on less long-term risk, ARMs typically offer lower introductory rates than 30-year fixed mortgages.
Who is this for?
Ideal for buyers who know they will sell the home or refinance before the initial fixed-rate period ends (usually 5, 7, or 10 years).
Pros
- Lower initial interest rate
- Lower initial monthly payments
- Allows you to qualify for a larger loan amount initially
- Caps limit how much the rate can increase
Cons
- Payments can increase significantly after the fixed period
- Requires planning to sell/refinance before the adjustment
- More complex than a fixed-rate loan
Get Your Personalized Rate
Fill out the form below and we'll match you with top lenders in your area.
1
2
3
What's your goal today?
Select an option to get started.