ARM | Adjustable Rate Mortgage | Total Mortgage

Adjustable Rate Mortgage

An ARM offers you access to some of our lowest interest rates, but it’s not for everyone.
Learn more about how it works.

Adjustable Rate Mortgage

What is an adjustable rate mortgage?

An adjustable rate mortgage (ARM) offers a fixed rate for an initial period of time. After that initial period ends, the rate will reset, adjusting up or down to reflect market conditions for the remaining duration of the loan.

You’ve got a lot of choices when it comes to customizing an ARM for your needs. For example, a 5/1 hybrid ARM has a 5-year fixed interest rate period, after which the rate adjusts every year. 1/1, 3/1, 7/1, and 10/1 options are also common.

How is the adjusted interest rate determined?

After the initial fixed period ends, your new ARM interest rate is calculated by adding a margin to an existing index.

Of course, lenders usually cap changes in interest rates. Where depends on the terms you agreed on, but a common rate cap structure for a 5/1 ARM is 2/2/6. This means that for both the initial adjustment and each year after, your rate can rise by up to 2%, but over the life of the loan, the maximum increase is 6% total. 5/2/6 is another common cap structure, and others may be available.

Is an ARM right for me?

ARMs are definitely not for everyone, but thanks to low ARM Mortgage Rates they can be great for people in certain situations. Consider one if you are

Why Total Mortgage?

After 17 years of success, it’s safe to say that we know what we’re doing. Plus:

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An Adjustable Rate Mortgage (ARM) is perfect if you plan on moving or refinancing in the near future. It offers:

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