Adjustable-Rate Mortgage (ARM)
A lower fixed rate for the first 5, 7, or 10 years. A strong tool when you know your timeline.
An ARM is fixed first and adjustable later. A 7/6 ARM, for example, holds one rate for seven years and then adjusts every six months after that, based on an index plus a fixed margin.
Because the lender is only committing to the rate for the initial period, the starting rate is typically lower than a comparable 30-year fixed. If your horizon is shorter than the fixed period, that discount is close to free money.
A good fit when…
- You expect to sell or refinance before the fixed period ends
- You are in a job or life stage where a move is likely
- The rate gap over a fixed loan is currently wide
- You want a lower payment now and can absorb an adjustment later
Worth knowing
- If you stay past the fixed period, your rate and payment can rise
- Adjustments follow an index you do not control
- Plans change — do not choose an ARM assuming you will definitely move
Our take. Every ARM we write has caps: a limit on the first adjustment, a limit on each later adjustment, and a lifetime ceiling. Before you sign anything, we will show you the worst-case payment under those caps, so you are deciding with the downside fully visible.
Not sure this is the right program?
Most people arrive certain they need one specific loan and leave with a better-fitting one. Tell us what you are trying to do and we will lay out the realistic options side by side — payment, cash to close, and total cost — so you can compare them honestly.
30-Year Fixed15-Year FixedFHA LoansVA LoansUSDA LoansJumbo Loans203k Renovation
Ready to see your real numbers?
Start a personalized quote request in about a minute. No credit pull, no obligation, no runaround.