Adjustable Rate Mortgage Loans
Want a lower initial interest rate? An Adjustable Rate Mortgage (ARM)* might be the loan for you.
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What is an adjustable rate mortgage? An adjustable rate mortgage, also referred to as an ARM loan, has a variable interest rate. The interest rate for an ARM loan can rise or fall based on rate changes, unlike a fixed-interest rate mortgage where the rate remains the same for the loan term. You may consider an ARM loan if you are relocating in the next few years or plan to pay off the loan in a short amount of time. Typical terms for ARM loans include 5, 7, 10 and 15 year term agreements, where the introductory rate is locked in for a certain time before it changes.
Key Considerations
- You’re planning to move or sell your home after a few years
- You’re planning to repay your loan in a short amount of time
- You expect interest rates to remain stable or decline
- You want a lower initial monthly payment and don’t mind a variable interest rate
Key Benefits
- Flexible terms, based on your needs
- Often a lower initial interest rate and payment
Adjustable Rate Mortgage Requirements
- Very good to excellent credit.
- Loan amount varies by product type but can go up to $3m and higher on private bank.
- More than 5% down (ideally 20% or more).
Mortgage Loan Calculators
Need help determining how much you can borrow? Use these easy-to-use calculators to plan your financial strategy.
Calculate your monthly mortgage payment for a given purchase price, down payment, interest rate, and loan term
Find out how much you can borrow for the home of your dreams
Find out whether it’s better to make a small or large down payment
Adjustable Rate Mortgage FAQs
Additional Resources
First Time Home Buyer Guide
Thinking about buying your first home? Fifth Third Bank offers you tips that take you through the entire process.
Get to Know the Terms You May Hear During the Home-Buying Process
Learn about terms used in mortgage loans with our mortgage glossary & get answers to mortgage frequently asked questions in our FAQ section!
The Mortgage Refinancing Process and Its Benefits
Refinancing a mortgage offers a variety of potential benefits for homeowners. Here’s what to know about the mortgage refinancing process and how to get started.
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