Adjustable-Rate Mortgage (ARM)
Start with a lower rate and take advantage of today's market conditions.
What is an Adjustable-Rate Mortgage?
An adjustable-rate mortgage (ARM) offers a lower initial interest rate that is fixed for a set period — typically 5, 7, or 10 years — before adjusting periodically based on market indexes. The initial rate is usually significantly lower than a comparable fixed rate loan.
After the initial fixed period, the rate adjusts annually within defined caps, meaning your payment could go up or down. ARMs are a smart strategy for buyers who plan to sell or refinance before the adjustment period begins.
Key Benefits
- Lower initial interest rate than fixed loans
- Lower monthly payments during the fixed period
- Rate and payment caps limit your exposure
- Ideal if you plan to move or refinance within 5–10 years
- More purchasing power at today's rates
Is an ARM Right for You?
ARMs work well for buyers who don't plan to stay in the home long-term, or for those who expect their income to grow and can handle potential payment increases down the road.
They're also popular with buyers who want to maximize their purchasing power now and plan to refinance into a fixed rate before the adjustment period kicks in.
Explore Your ARM Options
Let us walk you through the numbers and find the right ARM structure for your goals.