Adjustable Rate Mortgages

Adjustable Rate Mortgages (ARMs)

Flexible rates, smart savings—especially in the early years.

An Adjustable Rate Mortgage (ARM) starts with a lower interest rate than a traditional fixed-rate mortgage. That initial savings period can make monthly payments more affordable, giving you breathing room as you grow into your home or plan for a future move.

After a set number of years (typically 5, 7, or 10), the interest rate adjusts periodically based on market conditions. ARMs can be a great fit if you don’t plan to stay in the home long-term or expect your income to increase over time.

Common ARM Variations:

ARM loans are usually labeled by two numbers, like 5/1 ARM or 7/6 ARM. Here’s what those mean:

• 5/1 ARM – Fixed rate for the first 5 years, then adjusts once a year
• 7/1 ARM – Fixed for 7 years, then adjusts annually
• 10/1 ARM – Fixed for 10 years, then adjusts annually
• 5/6 ARM – Fixed for 5 years, then adjusts every 6 months
• 7/6 ARM – Fixed for 7 years, then adjusts every 6 months
  

Each variation gives you a different blend of stability and long-term flexibility, depending on your financial goals and timeline.

Why Choose an ARM?

• Lower initial interest rate = lower monthly payments early on
• Great option if you plan to move or refinance before the rate adjusts
• Can free up cash flow for other priorities
• Ideal for growing families, short-term homeowners, or professionals on the move

Is an ARM Right for You?

You might benefit from an ARM if:

• You’re planning to sell or refinance within a few years
• You want to maximize affordability in the early loan years
• You’re confident about future income growth or job changes
• You want a lower monthly payment now to invest or save elsewhere
  

We’ll help you compare your options and choose the right mortgage for your goals—ARM or fixed.

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Let’s Talk About Your Best Fit. Contact Us Today