Mortgage Rates are Down!
ARM (Adjustable-Rate Mortgage)
An adjustable-rate mortgage (ARM) offers a low initial interest rate for a fixed period, typically 3, 5, 7, or 10 years, before adjusting periodically based on market conditions. This loan is ideal for homebuyers who plan to sell or refinance before the rate adjustment, allowing them to take advantage of lower initial mortgage payments. ARMs can be a great choice for those looking for short-term savings or expecting future income growth. If you’re considering a mortgage with flexible terms and lower upfront costs, explore whether an ARM loan is the right fit for your home financing needs.
A Reliable Home Loan You Can Trust.
Lower Initial Interest Rates
Start with a lower rate compared to fixed-rate mortgages, saving money upfront.
Flexibility for Short-Term Homeownership
Perfect for people who don’t plan on staying in the home for an extended period.
Potential for Rate Adjustments to Decrease
In some cases, your rate could go down if market conditions improve.
Lower Monthly Payments at the Start
Enjoy lower monthly payments during the initial fixed-rate period, freeing up cash for other expenses.
Loan Guidelines
If your details are near these guidelines, we encourage you to apply or reach out. Even if you don’t qualify for a 30-year fixed-rate mortgage, we may have other options available.
The Home
Purchase a new home or refinance your current mortgage.
Credit Profile
A credit score above 620 is typically required.
Debt-to-Income
Your debt-to-income ratio (DTI) should be under 50%.
Closing Costs
Along with your down payment, you’ll need sufficient funds to cover closing costs.
Explore Your Potential
Our calculators help you understand and visualize your options
Mortgage Calculator
Planning to buy a home? Calculate your estimated monthly payments, including taxes and insurance.
Refinance Calculator
Considering refinancing your mortgage? Find out how much you could save.
Frequently Asked Questions
Have questions? We’ve got answers! Explore our FAQ section to find helpful information about loans, refinancing, and more. If you don’t see what you’re looking for, feel free to contact us—we’re here to help!
Who are Adjustable-Rate Mortgages (ARMs) best for?
ARMs are best for borrowers who plan to sell or refinance their home before the interest rate adjusts, or those who are comfortable with potential rate fluctuations and want to take advantage of lower initial rates.
How do Adjustable-Rate Mortgages (ARMs) work?
An ARM starts with a fixed interest rate for a certain period, typically 3, 5, 7, or 10 years. After the initial period, the rate adjusts periodically based on an index, and your monthly payment may increase or decrease depending on market conditions.
What are the pros and cons of an Adjustable-Rate Mortgage (ARM)?
Pros:
- Typically lower initial interest rates compared to fixed-rate mortgages.
- Potential for lower monthly payments during the initial fixed-rate period.
- Good option for borrowers who plan to move or refinance before the rate adjusts.
Cons:
- After the initial fixed period, your interest rate may increase, leading to higher monthly payments.
- More risk if interest rates rise significantly.
- Less predictable than fixed-rate mortgages, especially long-term.
Can I refinance or sell my home to avoid rate adjustments?
Yes, many borrowers who choose ARMs plan to refinance or sell their home before the adjustable period kicks in. However, it’s essential to be aware of the potential for higher payments once the rate adjusts.