Here’s how ARMs work: You get a fixed rate for a few years before the mortgage adjusts annually, based on a particular index value. Point is, you either want to sell before your rate increases or refinance your mortgage. But you’ll save money upfront because the intro rate is lower than a fixed-rate option.

Key Features of ARMs

  • Increases the availability of credit if you’re looking for a Jumbo Loan
  • Get a fixed rate for 3, 5, 7 or 10 years before the mortgage becomes adjustable
  • Ideal if you’re planning to sell your home before the low intro rate adjusts upward


Down Payment Varies, see Fixed Rate or FHA
Terms 3/1, 5/1, 7/1, 10/1 years fixed/year
Credit Score Varies, see Fixed Rate or FHA
Mortgage Insurance Varies, see Fixed Rate or FHA
Maximum Loan Limit Varies, see Fixed Rate or FHA