An adjustable-rate mortgage starts with a lower fixed interest rate for an initial period. After that, the rate may adjust at set intervals based on market conditions. ARMs can be a smart option for buyers who don’t plan to stay in their home long-term.
Ideal for buyers who plan to move, sell, or refinance before the rate adjusts.
Great for borrowers looking to take advantage of lower starting rates.
Enjoy reduced payments during the initial fixed-rate period.
Useful for financial planning when you expect income growth or future refinancing.
Credit score, income, and debt-to-income ratio are reviewed to confirm eligibility.
Borrowers should be comfortable with possible future rate changes.
Common ARM options include 5/1, 7/1, and 10/1 terms.
Yes, payments may change after the fixed period ends, depending on market rates.
Yes. Many borrowers refinance before the adjustment period begins.
