Keep your options open with an Adjustable Rate Mortgage!

What is an ARM?

An ARM is a home loan with an interest rate that changes after a fixed amount of time—usually 5-7 years. ARMs typically offer lower interest rates and lower monthly payments than a fixed rate mortgage. After the allotted time passes, the rate may adjust and your monthly mortgage payments will adjust accordingly.

If your top priority is a low monthly payment or you don't plan on staying in your home for more than 5-7 years, an adjustable rate mortgage (ARM) could be right for you. If flexibility is your top priority, this loan can be a viable alternative to a 15 or 30-year fixed rate mortgage.

Is an ARM right for you?

An ARM can give you low rates and extra security—important considerations when searching for your perfect home. The benefits of an ARM include:

  • ARM rates can be lower than a 30-year fixed rate.
  • ARMs can feature lower monthly payments, allowing you to maximize cashflow.
  • ARM rates do not change during the initial term(5, 7 and 10-year options available).
  • Adjustment rate caps offer extra protection.
  • ARMs may benefit first-time homebuyers and those looking to refinance.

As the borrower, you take advantage of lower initial payments by leveraging the possibility that the mortgage interest rate could increase after the initial term. This means that your ARM transfers part of your home loan’s interest rate risk from the lender to the borrower, giving you the lowest rate on the market.

An ARM is also a great way to qualify for a higher loan amount, giving you the means to purchase a more expensive home. Many homebuyers will take out large mortgages to secure a 1-year ARM and later refinance to prevent a rate hike.

Why trust Guaranteed Rate with your ARM?

At Guaranteed Rate, we’ve helped hundreds of thousands of Americans find a terrific loan. Apply now—we can help you find the perfect adjustable rate mortgage!

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Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.