Adjustable Rate Mortgage

Flexible rates. Potential savings.

Adjustable Rate Mortgages (ARMs) offer lower initial interest rates that adjust over time, making them a smart choice for buyers who expect to move or refinance within a few years.

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Adjustable Rate Mortgage

features

01

Lower Initial Interest Rates

ARMs start with lower rate than fixed-rate mortgages, offering savings upfront.

02

Adjustment Periods

Interest rates are fixed for an initial period, then adjust periodically based on market conditions.

03

Interest Rate Caps

ARMs include rate caps, limiting how much the rate can increase at each adjustment and over the life of the loan.

04

Index and Margin

Rates adjust based on a market index plus a margin, offering transparency in how adjustments are calculated.

Adjustable Rate Mortgage

Benefits

Upfront Savings

ARMs typically start with lower interest rate than fixed-rate mortgages, leading to lower monthly payments in the early years of the loan.

Rate Flexibility

The interest rate on an ARM adjusts periodically, which can benefit borrowers if rates decrease over time.

Potential to Save on Interest

For those planning to move or refinance within a few years, the lower initial rate of an ARM can result in significant interest savings than a fixed-rate.

Variety of Adjustment Terms

ARMs come with different adjustment terms, allowing borrowers to choose how frequently their rate will adjust, providing flexibility based on their financial.

FAQs

How does the ARM process work?
What documents are needed for an ARM?
Will I need an appraisal for an ARM?
What is an adjustable rate mortgage (ARM)?
Who is eligible for an adjustable rate mortgage?

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