Adjustable ratea lower startfor shorter plans.
An adjustable rate mortgage, or ARM, holds a fixed rate for 5, 7 or 10 years, then adjusts every 6 months. The starting rate is often lower than a 30 year fixed. It fits buyers who expect to move, refinance or pay down the loan before the fixed period ends, and we show you the worst case before you choose.
Who ARM works best for.
A strong fit if
- You expect to move within the fixed period
- You expect a raise, a bonus or a home sale that will let you pay down the loan
- You are buying a larger home or jumbo and want a lower starting payment
- You are comfortable with the worst case payment shown below
Compare options if
- This is your forever home and you want one payment for 30 years
- Your budget would be stretched by the worst case payment
- The rate gap between the ARM and a 30 year fixed is small. Then the fixed rate is usually worth it
ARM guidelines in plain numbers.
These are the program rules. Each lender can add its own on top, which is why we shop your file across several of them.
| Structures | 5/6, 7/6 and 10/6 ARMs. The first number is the fixed period in years. The 6 means it adjusts every 6 months after that. |
|---|---|
| Index | The 30 day average SOFR, plus a set margin from your lender. |
| Caps | 5/6 ARM: 2/1/5, meaning up to 2% at the first change, 1% at each change after, and 5% over the life of the loan. 7/6 and 10/6 ARMs: 5/1/5. |
| Down payment and credit | Usually follows conventional rules. Most ARM programs look for 5% or more down. |
| Qualifying | Lenders may qualify you at a rate above the starting rate to make sure you can handle an adjustment. |
| Available for | Conventional, jumbo, and some FHA and VA programs. |
See the starting payment and the worst case.
Pick a fixed period. The estimate shows your payment today, the highest it could go at the first change, and the lifetime cap.
Lower start or a locked payment.
The deciding question is how long you will keep the loan. We price both so you can see the gap.
Apply once
One secure application, about 10 minutes.
We price both
ARM and 30 year fixed across our lenders, side by side.
You pick with real numbers
Payment, cash to close and total cost, in plain terms.
ARM or 30 year fixed?
| Feature | 30 year fixed | ARM |
|---|---|---|
| Starting rate | Higher | Often lower |
| Payment changes | Never | After 5, 7 or 10 years |
| Best for | Long term owners | Plans under 10 years, jumbo buyers |
| Risk | None from rates | Capped increases |
ARM questions we hear every week.
What does 7/6 mean?
The rate is fixed for the first 7 years, then adjusts every 6 months based on the SOFR index plus your lender's margin.
How high can my rate go?
On a 5/6 ARM, up to 2% at the first change, 1% at each change after, and 5% over the life of the loan. On 7/6 and 10/6 ARMs, up to 5% at the first change and 5% over the life of the loan. The estimator shows both cases.
Can I refinance before it adjusts?
Yes, if you qualify at that time. Many ARM borrowers plan to refinance or sell before the fixed period ends, but rates and home values are not guaranteed.
Can the rate go down?
Yes. If SOFR falls, your rate can adjust down at each change, but not below the floor set in your note, usually your margin.
Is an ARM risky?
The risk is a higher payment after the fixed period. Caps limit how high it can go. If the worst case payment fits your budget, the risk is defined.
Compare other options.
Conventional Loans
3% down for first-time buyers, and mortgage insurance that comes off at 20% equity.
ExploreHigher price pointsJumbo Loans
Financing above the 2026 conforming limit of $1,249,125 in the DMV.
ExploreRefinanceRefinance & Cash-Out
Lower your rate, drop FHA insurance, shorten your term or take cash out.
ExploreLow down paymentFHA Loans
3.5% down and flexible credit for buyers with a 580+ score.
Explore