An ARM starts with a fixed rate for a set number of years, then adjusts periodically based on a market index.
A good fit for
- Buyers who expect to move or refinance within a few years
- Jumbo borrowers looking for a lower starting rate
How it works
- Common fixed periods are 5, 7 or 10 years
- After that the rate adjusts within set caps
Keep in mind
- Your payment can rise after the fixed period
- Ask about the caps and the index before choosing
Is a Adjustable-Rate Mortgage (ARM) right for you?
Every lender's guidelines differ — Chip will shop them for you.
Related loan options
This page is general education, not a loan offer or commitment. Terms, eligibility and availability vary by lender and change over time.