Adjustable Rate

Is an ARM Right for You?

ARM (Adjustable rate mortgage) loans start with an introductory interest rate for the first 5 to 10 years. After that, it adjusts annually to reflect current interest rates.

ARMs at a Glance:

  • Lower initial interest rates and monthly payments for the first 5-10 years of the loan
  • Rates adjust after the initial period to reflect current rates
  • Payments after the initial period fluctuate annually depending on the federal rates and may increase substantially
  • ARMs are a great option for homeowners who don’t plan on living in the home for more than a few years or beyond the initial fixed-rate period. 
  • Lower initial rates leave more money in your wallet due to lower mortgage payments, leaving you extra wiggle room to save money for the future.