Is an adjustable rate mortgage right for you?
With Rocket Mortgage® by Quicken Loans, our fast, powerful and completely online way to get a mortgage, you can find out which loan option is right for you.
Not comfortable starting online? Answer a few questions, and we’ll have a Home Loan Expert call you.
How It Works
How Adjustable Rate Mortgages Work
Your interest rate is fixed for a specific period. After that, your interest rate may change annually depending on the market. That means your monthly mortgage payment can go up or down each year. Your rate won’t increase more than 5% of the original rate throughout the life of the loan.
A popular option is a 5/1 Adjustable Rate Mortgage, or ARM where your interest rate is fixed for 5 years.
The Different Types of Adjustable Rate Mortgages
- FHA offers an ARM option
- Qualified veterans, service members and spouses can eligible for an ARM with a VA loan
How You Save with an Adjustable Rate Mortgage
- Your starting interest rate is typically lower than other kinds of loans
- Today’s low interest rate for a 5/1 ARM is 3.875% (4.932% APR)
- Monthly mortgage payments are more affordable during the first years
- Down payments can be as low at 5% on a home loan purchase
- Refinance up to 95% of your current home’s value
The Benefits of Getting a Loan from Quicken Loans
- Complete your application completely online and speak to a real person if you need help.
- Home Loan Experts are available via chat, email and phone to help you understand whether an ARM is right for you.
- We service 99% of our mortgages, so our great customer service continues after you close.
- After you close your loan, you can manage your mortgage online without any hidden fees.
Learn About Adjustable Rate Mortgages
- Understanding Adjustable Rate Mortgages: ARM Basics
- What’s the Difference Between Adjustable Rate and Fixed-Rate Mortgages?
- Read more about mortgage options in our Home Buyer’s Guide
- Mortgage rates could change daily.
- Actual payments will vary based on your individual situation and current rates.
- Some products may not be available in all states.
- Some jumbo products may not be available to first time home buyers.
- Lending services may not be available in all areas.
- Some restrictions may apply.
- Based on the purchase/refinance of a primary residence with no cash out at closing.
- We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 720, or in the case of certain Jumbo products we assume a credit score over 740; and an escrow account for the payment of taxes and insurance.
- The lock period for your rate is 40 days.
- The loan to value (LTV) ratio is 75%. If LTV > 80%, PMI will be added to your monthly mortgage payment, with the exception of Military/VA loans. Military/VA loans do not require PMI.
- Please remember that we don’t have all your information. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Quicken Loans offers a wide variety of loan options. You may still qualify for a loan even if your situation doesn’t match our assumptions. To get more accurate and personalized results, please call (800) 251-9080 to talk to one of our mortgage experts.