Adjustable-Rate Mortgage

Find out if an ARM is right for you.

What is an ARM?

An Adjustable-Rate Mortgage (ARM) is a type of mortgage loan with an interest rate that may change periodically, unlike a fixed-rate mortgage where the rate remains the same throughout the term. With an ARM, the interest rate may initially be lower, but it can fluctuate based on the market index, potentially resulting in higher or lower monthly payments over time. Understanding the benefits and drawbacks of an ARM can help you decide if it's the right fit for your financial situation.

Benefits of an ARM

Lower Initial Rate

Save money with a reduced rate at the beginning.

Rate Adjustment Periods

Adjustment intervals provide flexibility.

Potential Savings

Pay less if rates remain stable or decrease.

ARM FAQ Section

Frequently Asked Questions

How does an ARM work?

An ARM (Adjustable-Rate Mortgage) starts with a fixed rate for a set number of years, then adjusts periodically based on a market index.

What happens when the rate adjusts?

Your interest rate and payment could increase or decrease depending on the market, subject to limits set in your loan terms (like caps).

Is an ARM right for me?

If you expect to move, refinance, or sell before the rate adjusts—or want a lower initial payment—an ARM may be a good fit.

What does 5/6 ARM mean?

A 5/6 ARM has a fixed interest rate for 5 years, then adjusts every 6 months after that.

ARM Cards Horizontal Layout
Popular

5/1 ARM

3.25%
  • Initial Fixed Period: 5 years
  • Adjustment Interval: Every 1 year
  • Initial Rate Cap: 2%
  • Periodic Rate Cap: 1%
  • Lifetime Cap: 5%
  • Index: 1-Year Treasury

3/1 ARM

3.00%
  • Initial Fixed Period: 3 years
  • Adjustment Interval: Every 1 year
  • Initial Rate Cap: 2%
  • Periodic Rate Cap: 1%
  • Lifetime Cap: 5%
  • Index: 1-Year Treasury

7/1 ARM

3.50%
  • Initial Fixed Period: 7 years
  • Adjustment Interval: Every 1 year
  • Initial Rate Cap: 2%
  • Periodic Rate Cap: 1%
  • Lifetime Cap: 5%
  • Index: 1-Year Treasury

10/1 ARM

3.75%
  • Initial Fixed Period: 10 years
  • Adjustment Interval: Every 1 year
  • Initial Rate Cap: 2%
  • Periodic Rate Cap: 1%
  • Lifetime Cap: 5%
  • Index: 1-Year Treasury

5/6 ARM

3.30%
  • Initial Fixed Period: 5 years
  • Adjustment Interval: Every 6 months
  • Initial Rate Cap: 2%
  • Periodic Rate Cap: 0.5%
  • Lifetime Cap: 5%
  • Index: 6-Month LIBOR

7/6 ARM

3.55%
  • Initial Fixed Period: 7 years
  • Adjustment Interval: Every 6 months
  • Initial Rate Cap: 2%
  • Periodic Rate Cap: 0.5%
  • Lifetime Cap: 5%
  • Index: 6-Month LIBOR

Curious if an ARM is right for you? Apply now and get personalized advice!