An ARM can lower your payment for the first several years. Get a free quote and see if it fits your plans.
An ARM is an Adjustable Rate Mortgage. Unlike fixed rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on an ARM will change periodically. The initial interest rate of an ARM is lower than that of a fixed rate mortgage, consequently, an ARM maybe a good option to consider if you plan to own your home for only a few years; you expect an increase in future earnings; or, the prevailing interest rate for a fixed mortgage is too high.
We're here to make it a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE Adjustable Rate Mortgage Qualifier.
We'll help you clearly see differences between loan programs, allowing you to choose the right one for you.
An adjustable rate mortgage starts with a fixed rate for an initial period, usually 5, 7 or 10 years, and that rate is often lower than a 30-year fixed. You’ll see these written as 5/6, 7/6 or 10/6 ARMs. The first number is the fixed period in years, and the 6 means the rate adjusts every six months after that.
When the fixed period ends, your rate adjusts based on a market index plus a set margin. Rate caps limit how much it can change at each adjustment and over the life of the loan, so you’ll know your worst-case payment before you sign.
A strong fit if you: plan to sell or refinance before the fixed period ends, expect your income to grow, or want the lowest possible payment in the early years.
Here's how our home loan process works:
ARM qualification is similar to a fixed-rate loan, and some lenders qualify you at a rate higher than your starting rate to make sure you can handle future adjustments. We’ll walk you through the caps, the index and your potential payment range before you commit.
Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:
