Adjustable Rate Mortgages
An ARM starts with a lower fixed rate for an initial period, then adjusts periodically based on market conditions — a smart choice if you plan to move or refinance before the rate adjusts.
Benefits of an Adjustable Rate Mortgage
ARMs can save you money in the short term and help you qualify for a larger loan amount.
Lower initial interest rate than a comparable fixed-rate loan
Lower initial monthly payment frees up cash flow
Rate caps limit how much your rate can increase
Ideal if you plan to sell or refinance before the fixed period ends
Available in 3/1, 5/1, 7/1, and 10/1 ARM structures
Can qualify for a larger loan amount due to lower initial payment
Convertible ARM options available on select programs
Available for purchase and refinance
ARM Options
The first number is the fixed-rate period in years; the second is how often the rate adjusts after that.
TypeFixed PeriodThen AdjustsBest For
3/1 ARM3 yearsAnnually after year 3Short-term ownership (under 5 years)
5/1 ARM5 yearsAnnually after year 5Buyers planning to move or refinance within 5–7 years
7/1 ARM7 yearsAnnually after year 7Medium-term ownership with rate savings upfront
10/1 ARM10 yearsAnnually after year 10Longer-term ownership with initial rate savings
* All ARMs include periodic and lifetime rate caps that limit how much your rate can increase. Ask us for details on current cap structures.
Is an ARM Right for You?
Our loan officers will help you compare ARM and fixed-rate options side by side so you can make the best decision for your situation.