Adjustable-rate mortgage information
Learn how an initial period, index, margin, adjustment schedule, and caps can affect the payment.
Discuss adjustable-rate options
Is an Adjustable-Rate Mortgage (ARM) right for you?
Adjustable-Rate Mortgage Options
Unlike a fixed-rate mortgage, an ARM can change after its initial period. The loan documents identify the index, margin, adjustment schedule, caps, and any floor.
The initial ARM rate may be different from a fixed-rate option, but a lower initial rate is not guaranteed. Compare verified terms for the same complete scenario.
Review the highest possible payment and do not rely on a future sale or refinance to avoid an adjustment.
What to review
Discuss these items with a licensed mortgage professional:
- The initial period and adjustment schedule
- The index, margin, caps, floor, and highest possible payment
- The rate, annual percentage rate, points, and fees
- The budget if the rate and payment increase
Important ARM considerations
An ARM can change after the initial period. Compare the index, margin, caps, highest possible payment, and fixed-rate alternatives for the same verified scenario.
View verified contact details Initial period and
adjustments
Index, margin, and
caps
Highest possible
payment
Discuss adjustable-rate options
A licensed mortgage professional can compare verified ARM and fixed-rate terms for your complete scenario.
View contact optionsThis page provides general information only. It is not a loan approval, commitment, eligibility decision, or rate quote. Program, lender, property, credit, and documentation requirements can vary.