Adjustable Rate Mortgage (ARM)

Smart, Flexible & Budget-Friendly Home Loans
Looking for a way to enjoy lower monthly payments and more flexibility with your home loan? An Adjustable-Rate Mortgage (ARM) might be the perfect fit. Whether you’re planning to sell your home in a few years or just want a lower rate upfront, ARMs offer a unique combination of affordability and adaptability.

What is an Adjustable-Rate Mortgage?

An Adjustable-Rate Mortgage is a home loan that starts with a fixed interest rate for a certain number of years (like 5, 7, or 10), and then the rate adjusts periodically based on the market. It’s ideal if you plan to move, refinance, or just want to keep your payments lower in the short term.

Why Choose an Adjustable-Rate Mortgage?

Lower Interest Rates

ARMs usually come with lower initial interest rates compared to fixed-rate loans—giving you instant savings from day one

Lower Down Payment

Start your homeownership journey with as little as 5% down, making it easier to get into your new home.

Flexible Monthly Payments

After the fixed period, your rate can go up or down depending on the market. If rates drop, your payments might too.

Ideal for Short-Term Goals

Planning to move or upgrade within 5 to 10 years? An ARM keeps your costs lower while you’re in your current home.

Who Can Apply for an Adjustable-Rate Mortgage?

To qualify for an ARM with Faster Mortgage, you’ll typically need:

Minimum 5% Down Payment

That’s right—you can own your home with just 5% down, keeping more cash in your pocket.

Credit Score of 620+

A score of 620 or higher is usually required. The better your score, the better your rate.

Flexible Credit Acceptance

Got a mixed credit history? Don’t stress. ARMs are often more flexible with credit profiles than fixed-rate loans.

How Does an Adjustable Rate Mortgage Work?

Fixed First, Then Adjustable

You get a low fixed interest rate for the first few years (like 5/1 or 7/1 ARMs), followed by periodic rate changes based on a financial index (often SOFR) + a lender’s margin.

Rate Caps for Protection

Don’t worry. ARMs have built-in rate caps to limit how much your rate can go up at each adjustment and over the life of the loan.

Pros and Cons of Adjustable Rate Mortgages

  • Pros
  • Lower Starting Rates = More Affordable Payments
  • Refinancing Potential when market conditions improve
  • Flexible for Moving or Selling within a few years
  • Can Save Your Thousands in interest during the fixed period
  • Cons
  • Rates Can Rise after the fixed term ends
  • Unpredictable Payments during adjustable years
  • Requires Strategic Planning to refinance or sell at the right time

Is an ARM Right for You?

Best Fit For:
Short-Term Homeowners
If you plan to move or sell in the next 5–10 years, you’ll likely move before the adjustable period kicks in.
Refinance-Savvy Buyers

Plan to refinance when the fixed-rate period ends? You could save big in the short term.

You Might Prefer a Fixed-Rate Loan If:

You Like Predictability

If stable monthly payments make you feel more comfortable, fixed-rate loans offer peace of mind.

You're Staying Long-Term

If this is your forever home, a fixed-rate mortgage locks in stability.

Quick FAQs About Adjustable Rate Mortgages

How long does the fixed period last?

Common terms include 5, 7, or 10 years. For example, a 5/1 ARM has a fixed rate for 5 years, then adjusts every year.

What happens when the rate adjusts?

Your rate will go up or down based on the market index + margin. Don’t worry—caps keep rate jumps in check.

Can I refinance an ARM?

Absolutely! Many homeowners refinance into a fixed-rate mortgage before the rate adjusts.

Start Smart With an Adjustable Rate Mortgage

An Adjustable-Rate Mortgage is a smart, flexible, and cost-effective way to buy a home—especially if you’re not planning to stay long-term.

Let’s Talk – Get Personalized ARM Options Now

We’ll help you understand your choices, calculate your payments, and lock in a plan that fits your lifestyle.

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