Adjustable Rate Mortgage Loans

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 3, 5, 7, 10 and 15 year term agreements, where the introductory rate is locked in for a certain time before it changes. Learn about the benefits of adjustable rate mortgages and speak with a Mortgage Loan Specialist to get current adjustable rate mortgage rates.

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. Download our first time home buyer guide here!

How to Prepare to Renovate Your Starter Home

Looking to transform your first home into your dream home? Remodeling can do just that. Consider these tips when preparing to renovate your starter home.

Smart Ways to Save Up for a Down Payment

Saving up for a down payment on your home takes time and planning. Here are a few smart ways to set budgets and save up for your next home's down payment.