An Adjustable-Rate Mortgage (ARM) is a type of home loan where the interest rate is not fixed but adjusts periodically based on market conditions. Unlike a fixed-rate mortgage, an ARM offers a lower initial interest rate, which can result in significant savings in the early years of the loan.
The benchmark interest rate used to adjust your mortgage rate.
The percentage added to the index to determine your ARM's interest rate.
How often your interest rate changes (e.g., annually, semi-annually).
This is the initial time frame where your interest rate is lower and fixed. Common initial periods are 5, 7, or 10 years.
After the initial period, your rate will adjust periodically based on a specified index (such as the LIBOR or SOFR) plus a margin.
ARMs often include caps to limit how much your interest rate can increase at each adjustment and over the life of the loan.
Enjoy lower monthly payments in the early years of your loan.
If market rates fall, your payments may decrease.
Lower initial rates can make it easier to afford a more expensive home.
Getting pre-approved for a mortgage is easy with our online application process. Fill out our secure application form, and our team will review your details quickly, so you can start house hunting with confidence.
Once your application is received, a dedicated mortgage specialist will contact you to discuss your needs and preferences. We’ll work together to find the best mortgage options that align with your goals.
After reviewing and selecting the ideal mortgage plan, we’ll guide you through the approval process and ensure everything is in place for a smooth closing. Soon, you’ll be ready to move into your new home!
ARMs can be a great option if:
Our team of experienced mortgage professionals will guide you through every step of the process.
We offer customized mortgage solutions based on your financial situation and goals.
Benefit from some of the most competitive ARM rates available.
An ARM has an interest rate that can change over time, while a fixed-rate mortgage has an interest rate that remains the same throughout the life of the loan.
The frequency of rate changes depends on the terms of your ARM. Common adjustment periods include annually, semi-annually, or even monthly.
Yes, the primary risk is that your interest rate could increase significantly after the initial period, leading to higher monthly payments.
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