Adjustable-Rate Mortgage (ARM)

Get a more affordable rate and lower monthly payment at the start of your loan.

Who Are Adjustable-Rate Mortgages Best For?

If you want to pay less money at the start of your loan, an ARM may be the right mortgage for you.

The ARM is great for people who plan to pay their mortgage off quickly, plan to live in the house for only a short time or foresee their income increasing in the next few years.

How Do ARMs Work?

With an ARM, you’ll start with a low fixed interest rate for a set period of time - usually 5, 7 or 10 years. After that, your interest rate may change every 6 months or once a year, fluctuating with the market.

That means your monthly mortgage payment could go up or down twice a year. But your rate will never increase more than 5% of the original rate.

How Do I Qualify For An ARM?

  • General minimum 3.5% - 5% down payment.
  • Minimum qualifying FICO® Score of 580 - 620
  • Debt-to-income ratio (DTI) of no more than 50%.
  • Maximum loan-to-value ratio (LTV) of 95%.

Can You Refinance An Adjustable-Rate Mortgage?

Yes, you can refinance an adjustable-rate mortgage. When interest rates are low, refinancing an ARM can give you the stability of the same monthly payment for years to come. Refinancing could also help you consolidate debt or pay off your mortgage faster. Apply online or contact our experts at (800) 251-9080 to get started.  

Get approved for an Adjustable-Rate Mortgage now.

Apply online with Rocket Mortgage® by Quicken Loans® or click the button below to enter some info and get a call from a Home Loan Expert. You'll get a personalized recommendation on which loan option is best for you.

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Adjustable-Rate Mortgage Benefits

  • A key benefit of an ARM is that the initial rate is typically lower than a fixed-rate mortgage, which makes monthly payments more affordable.
  • Caps limit how much your interest rate and payment can rise over the life of the ARM loan.
  • An ARM can be a wise choice if you’re planning to pay off the loan in full, or sell your home, before the adjustment period kicks in.
  • For many people, the initial fixed-rate period matches how long they’ll be in their home before they move.
  • There’s a possibility your payment could go down if interest rates fall.

Benefits Of Getting An ARM Loan With Us

  • Apply online and work at whatever pace is convenient for you.
  • 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.
  • No prepayment penalties if you pay off your loan early.

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J.D. Power - 13 Years - Mortgage Origination
Rocket Mortgage received the highest score in the J.D. Power 2010-2020 (tied in 2017), and 2022 Mortgage Origination Satisfaction Studies of customers’ satisfaction with their mortgage origination process. Visit jdpower.com/awards for more information.