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Adjustable Rate Mortgages (ARM)

Flexible mortgage options with potentially lower initial rates

Understanding ARM Loans

An Adjustable Rate Mortgage (ARM) is a home loan with an interest rate that changes periodically based on market conditions. ARMs typically start with lower rates than fixed-rate mortgages, making them attractive for certain borrowers.

Key Features:

  • Lower initial interest rates
  • Rate adjusts periodically after fixed period
  • Rate caps limit adjustment amounts
  • Various term options available
  • Potential for rate decreases

Common ARM Types:

  • 5/1 ARM: Fixed for 5 years, then adjusts annually
  • 7/1 ARM: Fixed for 7 years, then adjusts annually
  • 10/1 ARM: Fixed for 10 years, then adjusts annually
  • 3/3 ARM: Fixed for 3 years, then adjusts every 3 years

Did You Know?

ARMs can be an excellent choice for homebuyers who plan to sell or refinance before the initial fixed-rate period ends.

2-3%
Lower Initial Rate
Than fixed-rate loans
3-10
Years Fixed
Initial period options
2/2/5
Rate Caps
Typical adjustment limits
6-12
Month Intervals
Rate adjustment periods

ARM Payment Calculator

Compare payments at different rates and see how your payments might change

ARM Payment Calculator

Monthly Payments

Initial Payment
$0.00
First 5 years
Adjusted Payment
$0.00
After year 5
Includes principal and interest only
Down Payment
$60,000.00
Loan Amount
$240,000.00
Rate Adjustment
2.000%

Calculator Disclaimer

This calculator provides estimates based on the information you enter and current market conditions. Actual loan terms, payments, and rate adjustments may vary based on:

  • Your credit score and history
  • Market index rates
  • ARM program terms
  • Rate caps and floors
  • Adjustment periods
  • Margin and index type

Please consult with one of our mortgage experts to understand the specific terms and conditions of ARM loan options available to you. The results shown are for informational purposes only and do not constitute a commitment to lend.

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Our ARM loan experts are here to help you understand your options.

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