Adjustable Rate (ARM)
Adjustable Rate Mortgages (ARMs) offer lower initial interest rates that adjust periodically based on market conditions.
At Murray Mortgage Solutions, we help borrowers understand whether an ARM aligns with their financial goals. The initial fixed-rate period typically ranges from three to ten years, during which the interest rate remains constant. After that, the rate adjusts periodically based on a specified index, such as the Secured Overnight Financing Rate (SOFR) or the Constant Maturity Treasury (CMT) rate, plus a lender-determined margin.
ARMs can be an effective strategy for homebuyers who anticipate a change in financial circumstances, such as an expected income increase, relocation, or refinancing opportunities. While the initial interest rate is generally lower than a fixed-rate mortgage, borrowers should be aware of potential rate increases after the fixed period ends.
Not sure which loan option is right for you? As a Mortgage Broker, we take a single application and use it to pre-qualify you for a variety of loan types, ensuring you receive the best possible financing solution for your unique situation. With our ClearPath™ application system, you have full transparency and flexibility, allowing you to move forward with confidence.
Highlights
Fixed-rate period typically lasts 3, 5, 7, or 10 years before adjustments begin
Interest rate adjusts based on a market index and lender margin
Rate caps limit how much the interest rate can increase at each adjustment
Best suited for borrowers who plan to sell, refinance, or pay off their mortgage within the fixed-rate period
*Information provided is for educational purposes only and is subject to change. All loan programs, interest rates, down payment requirements, and terms are subject to credit approval, underwriting guidelines, investor requirements, and may change without notice. Not all applicants will qualify. Restrictions may apply, including but not limited to geographic limitations, property type, and occupancy requirements.