Adjustable Rate Mortgages
The Lowdown on Adjustable Rate Mortgages...
Do I Qualify?
Most homeowners choose adjustable-rate mortgages for the lower initial payment, and then usually refinance the loan when the fixed-period ends. After that, the interest rate becomes variable (adjustable), and the homeowner typically refinances into another ARM or a fixed loan — or sells the home. In 2025, typical intro-rates on ARMs are lower than comparable fixed-rate mortgages (for example a 5/1 ARM may start around 5.50%-6.25%), which makes them appealing if you expect to own the home for only a few years or anticipate future earnings growth.
Our Adjustable Rates Are Low & Our Process is Quick & Painless
An ARM is a mortgage whose interest rate changes periodically. Unlike a fixed rate mortgage, which keeps the same rate for the full term, an ARM starts with a lower rate for an introductory period (such as 3, 5 or 7 years) and then adjusts based on market indices. An ARM may be a good option if you plan to:
Own the home for a limited number of years
Anticipate higher earnings in the future
Find current fixed-rates too high
We’re here to make the process easier, with tools and expertise that guide you step-by-step — starting with our FREE Adjustable Rate Mortgage Qualifier.
We’ll help you clearly compare loan programs, so you can choose what’s right for you whether you’re a first-time home buyer or a seasoned investor.
The Adjustable Rate Mortgage Loan Process
- Check Eligibility:Review income, credit score, and debt-to-income ratio.
- Choose a Lender:Compare lenders offering ARM loans and their terms.
- Get Pre-Approved:Submit financial details to receive a pre-approval letter.
- Find a Home: Search for a property within your price range.
- Submit Application: Complete the loan application with required documents.
- Rate Adjustment Terms:Understand the initial fixed period and adjustment intervals.
- Loan Processing:Lender reviews your application and approves the loan.
Benefits of the Adjustable Rate Mortgage Loan Process
- Lower Initial Rates: Typically offers lower interest rates during the initial fixed period.
- Potential for Savings: Can save money if rates stay low or you sell/refinance before adjustment.
- Flexibility: Ideal for short-term homeowners or those planning to refinance.
- Rate Caps: ARMs usually have caps that limit how much the rate can increase.
- Afford Larger Homes: Lower initial payments may help you qualify for a larger loan.