Adjustable Rate Mortgage
Lower initial interest rates that adjust over time, a smart choice for buyers who expect to move or refinance within a few years.
Adjustable Rate Mortgage Features
Initial Fixed Period
Your rate is fixed for an initial period, commonly 5, 7 or 10 years.
Periodic Adjustments
After the fixed period, the rate adjusts at set intervals based on a market index.
Rate Caps
Caps limit how much your rate can change at each adjustment and over the life of the loan.
Conforming & Jumbo Options
ARMs are available across a range of loan amounts.
Adjustable Rate Mortgage Benefits
- 01
Lower Initial Payment
Initial rates are often lower than comparable fixed-rate loans.
- 02
Fits Shorter Timelines
A good fit if you plan to sell or refinance before the fixed period ends.
- 03
Built-In Protection
Rate caps help limit payment changes.
- 04
Potential Savings
Save during the initial fixed period compared to a fixed-rate loan.
Loan Program Frequently Asked Questions
How does an ARM work?
The rate is fixed for an initial period, then adjusts periodically based on an index plus a margin.
Can my payment go up?
Yes. After the fixed period your payment can increase or decrease, within the limits of your rate caps.
What does 7/6 ARM mean?
The rate is fixed for 7 years, then adjusts every 6 months.
Can I refinance out of an ARM?
Yes, you may refinance into a fixed-rate loan later, subject to qualification and market conditions.