Question 1

How does an adjustable-rate mortgage (ARM) work?

Accepted Answer

An ARM typically starts with a fixed rate for a set period (often 5, 7, or 10 years) and then adjusts periodically based on an index plus a margin. You can estimate the initial payment with our [mortgage calculator](/calculators/mortgage).

Question 2

When does an ARM make the most sense?

Accepted Answer

ARMs can be a good fit if you expect to sell, refinance, or pay down the balance before the first adjustment, or if you want a lower initial payment and are comfortable with future rate uncertainty.

Question 3

Can my ARM payment increase after it adjusts?

Accepted Answer

Yes—your rate and payment can go up or down, but ARMs typically include caps that limit how much the rate can change per adjustment and over the life of the loan. We’ll review your cap structure during the quote process—start with an [application](/app).

Question 4

What is a 5/1 or 7/1 ARM?

Accepted Answer

The first number is how long the rate is fixed (5 or 7 years), and the second is how often it adjusts afterward (commonly annually).

Question 5

Are ARMs riskier than fixed-rate mortgages?

Accepted Answer

They carry more uncertainty after the fixed period, but the trade-off is often a lower initial rate. If you value predictability, compare an ARM to a fixed option using our [mortgage calculator](/calculators/mortgage).

Question 6

Can I refinance an ARM into a fixed rate later?

Accepted Answer

Yes, many borrowers refinance before the first adjustment or when it makes sense based on market conditions. If you want to explore options, you can [apply online](/app).

Adjustable-rate mortgage

Lower rates now, flexibility later — ARMs offer reduced payments upfront with caps for protection, giving you room to plan for what’s ahead.

Low Introductory Rate

Lower payments at first

Build Equity Early

Refinance Flexibility

Short-Term Savings

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