Get Started Buying with an Adjustable-Rate Mortgage
A home loan that can save on interest during the first few years.
Low Starting Interest Rate
ARMs start with a lower starting interest rate that stays the same during a fixed-rate period.
Lower Monthly Payments
Lower starting rates mean lower monthly payments during the fixed-rate period.
More Payments Toward Principal
You can pay extra toward your mortgage's principal balance to build equity faster.
Refinance Choices
With an ARM, you have the choice to refinance to a fixed-rate mortgage.
Why Choose an Adjustable-Rate Mortgage?
Adjustable-rate mortgages can be an excellent choice for borrowers who want to take advantage of lower initial interest rates and monthly payments.
Lower Starting Rate
ARMs typically offer lower initial interest rates compared to fixed-rate mortgages.
Fixed-Rate Period
Your interest rate stays fixed for an initial period, typically 3, 5, 7, or 10 years.
Interest Savings
Save on interest payments during the initial fixed-rate period compared to fixed-rate loans.
Buying Power
Lower initial payments may help you qualify for a larger loan amount.
Learn More About Adjustable-Rate Mortgages
SRK CAPITAL News offers helpful information about adjustable-rate mortgages and how they work.
5 Strategic Benefits of Adjustable-Rate Mortgages in Today's Market
40% of $1M+ Loans Are ARMs*
12% Market Share Growth Since 2021*
8Average Years Homeownership*
*Sources: CoreLogic 2024 data for luxury loan market share, Urban Institute 2024 for ARM market growth from 3.3% to 12.0%, National Association of Realtors for average homeownership duration. Individual results may vary based on loan amount, creditworthiness, and market conditions.
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Significant Initial Payment Savings
With ARMs typically offering rates 0.3-0.7% lower than fixed mortgages, borrowers can see meaningful monthly payment reductions during the introductory period. Actual savings vary by loan amount, credit profile, and current market conditions.
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Increased Home Buying Power
Lower initial rates help borrowers qualify for larger loan amounts on the same income compared to fixed-rate products, creating opportunities in competitive markets. ARMs are particularly popular for high-value purchases.
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Strategic Alignment with Rate Projections
With Federal Reserve projecting rate cuts in 2025-2026, ARM holders automatically benefit from falling rates without refinancing costs that typically range from 2-5% of the loan amount.
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Enhanced Safety Features
Modern ARMs include improved rate caps and qualification standards, resulting in default rates comparable to fixed-rate mortgages at approximately 2.8% nationally.
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Longer Initial Fixed Periods
Today's 7/6 and 10/6 ARMs offer extended stability with fixed rates for 7-10 years, providing security while preserving the benefits of potentially lower rates in later years.
Who Benefits Most from ARMs?
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First-Time Home Buyers
First-time buyers can leverage lower initial rates to enter the market sooner, qualify for more house, and build equity while enjoying payment stability during the early years of homeownership.
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Short-Term Homeowners
With average American homeownership duration around 8 years, many ARM holders move or refinance before rates adjust, maximizing the benefit of lower initial payments.
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Investment-Minded Borrowers
Sophisticated borrowers can invest the monthly payment difference between ARM and fixed-rate mortgages into higher-yielding assets.
Common ARM Questions
How much can my ARM payment increase?+
What happens at the end of my ARM fixed period?+
What\'s the difference between a 5/1 ARM and a 5/6 ARM?+
SRK CAPITAL Adjustable Rate Mortgage Calculator
Compare ARM options and visualize rate adjustments over time
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Step 1: Loan Details
Let's start with the basic details of your mortgage loan.
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