A lower rate now, if the timeline fits.
An ARM gives you a fixed — and usually lower — rate for the first 5, 7, or 10 years, then adjusts with the market within strict caps. Match the fixed window to how long you'll actually keep the loan and it's simply cheaper money. We'll price it against the fixed and tell you the truth.
An ARM fits you if…
- You'll move inside the window
PCS orders, a starter home, a planned relocation — pay for the years you'll use. - You're buying jumbo
ARM pricing is often sharpest above conforming limits. - You expect to refinance anyway
If your credit or income trajectory means a refi in a few years, the intro discount is free money. - You want a bigger budget now
A lower rate can qualify you for more house — used responsibly.
How the adjustments actually work
- The fixed period
Nothing changes for 5, 7, or 10 years — it behaves exactly like a fixed-rate loan. - After that: index + margin
Your new rate is a public index (SOFR) plus a set margin, recalculated every 6 months. - The caps protect you
Typical structures limit the first adjustment, each one after, and a lifetime max — you'll see the worst case in writing before you sign. - The escape hatches
Sell, refinance, or ride it — you're never trapped, and we set a rate alert to watch the exit for you.
The honest warning
If there's a real chance you'll still hold this loan when the fixed period ends, price the worst case, not the hope. We'll show you the fully-adjusted maximum payment next to the intro payment — and if the fixed-rate loan is the smarter buy for your situation, that's what we'll tell you.
FAQ
What do the numbers like "7/6 ARM" mean?
Fixed for 7 years, then adjusts every 6 months. The common menu is 5/6, 7/6, and 10/6.
How much lower is the ARM rate?
It varies with the market — sometimes half a point or more below the 30-year fixed, sometimes barely different. When the gap is thin, we'll steer you fixed; there's no prize for complexity.
Can the payment double overnight?
No. Caps limit each adjustment and set a lifetime maximum. You'll see the exact caps and the worst-case payment in your quote.
Can I refinance an ARM before it adjusts?
Yes, anytime — no prepayment penalty on the ARMs we broker. Many borrowers refinance or sell well inside the fixed window, which is the whole strategy.
Price the ARM against the fixed. Honestly.
Both quotes, side by side, with the worst case in writing. Then you choose.