Adjustable Rate Mortgage
Want an even lower mortgage rate? If you think you might sell in a few years, plan to refinance down the road, or expect an increase in income, an Adjustable Rate Mortgage (ARM) might be the perfect option. ARMs generally start with a lower rate than Fixed Rate Mortgages and stay steady for a certain amount of time. Then they adjust at predetermined intervals later on. So, get prequalified today and enjoy those lower initial interest rates. Plus, you can always convert it to a fixed-rate mortgage down the road.
Features & Benefits
Start with Lower Payments
Keep more cash in your pocket with lower payments starting out.
Start with a Lower Rate
ARM rates are typically lower than fixed-rate mortgages starting out.
Rate Protection
Rest easy knowing that your rate is limited on how much it can increase.
Today's Rates
Trusted, Local Lending from Start to Finish
We are one of the largest and most trusted mortgage lenders in Arkansas. Plus, with local lending and servicing from start to finish, we are with you every step of the way.
Frequently Asked Questions
How does an ARM work?
You start with a low interest rate for a set period, depending on the loan type. After this initial period, your rate will adjust at regular intervals, typically annually, based on changes in the market. This means your mortgage payments could increase or decrease over time, depending on how interest rates are trending.
What’s the difference between an ARM and a Fixed-Rate Mortgage?
With a Fixed-Rate Mortgage, your interest rate is locked in for the entire loan, so your mortgage payments stay the same. With an ARM, your rate can change after the initial period, meaning your payments may go up or down. With both fixed-rate and ARM loans, your payments can fluctuate each year due to changes in escrow costs, such as insurance or property taxes.
What are the pros of an ARM?
The biggest perk of an ARM is that it usually comes with a lower initial interest rate compared to a fixed-rate mortgage, which means smaller monthly payments to start. This is a great option if you plan to stay in your home for just a few years before selling. Plus, if market rates go down, your payments might go down too!
What happens when the rate adjusts?
Once your initial rate period ends, your interest rate adjusts based on the market. This means your mortgage payments may increase or decrease, depending on current market rates at the time of the reset.
Can I refinance my ARM?
Of course! If rates go down or you want a fixed rate, you can refinance your ARM at any time—just like a regular mortgage.
What’s a good example of how an ARM works?
Let’s use our 5/30 ARM loan as an example. When you close on your loan, your interest rate stays fixed for the first 5 years. No need to set a reminder because we’ll send you a heads-up when your loan is getting ready to adjust. Depending on how the market has changed during those 5 years, your rate could go up or down by as much as 2% from where it started.
To help protect you from any big surprises, all of our ARM loans have limits on how much your rate can change over the entire loan term. These limits are called adjustment caps. With the 5/30 ARM, your rate can’t increase by more than 2% each adjustment, and it can’t rise by more than 5% over the life of the loan.
After your loan adjusts, your rate will be fixed for another 5 years, and this process repeats for the rest of your loan term.
ARM loans aren’t for everyone, but they can offer great benefits if your situation or market conditions change over time. Plus, we offer other ARM options, too, so you have choices depending on what works for you. Our mortgage team is here to help you find the right loan for your needs.