What is an ARM?
An Adjustable Rate Mortgage (ARM) is a home loan with a fixed interest rate for an initial period, which then adjusts annually based on market conditions.
How Does It Work?
Let's break it down:
Fixed-Rate Period: Enjoy consistent monthly payments for the first 3, 5 or 7 years.
Adjustment Period: After that, your rate adjusts annually based on the market.
What Are the Benefits of Choosing an ARM?
- Save More Upfront: ARMs typically start with a lower rate than fixed-rate loans, which means smaller monthly payments in the early years.
- Smart for Short-Term Plans: It’s a good option if you expect to move, refinance or pay off your home before the fixed period ends.
- Built-In Protection: Our loans include rate caps that limit how much your interest rate can increase. This provides you with stability and peace of mind over the life of the loan.
Our Current Rates
Check out our latest ARM rates, and see how much you could save.
Adjustable Rate Mortgage (ARM) Rates
Type |
Rate |
APR |
Points |
Pmt1 |
|---|---|---|---|---|
|
Type 3 Year ARM |
Rate 5.125% |
APR 6.221% |
Points 0.00% |
Pmt1 $5.45 |
|
Type 5 Year ARM |
Rate 5.500% |
APR 6.178% |
Points 0.00% |
Pmt1 $5.68 |
|
Type 7 Year ARM |
Rate 5.875% |
APR 6.251% |
Points 0.00% |
Pmt1 $5.92 |
Is an ARM Right for You?
An ARM can be a smart choice if you:
- Plan to move within the next few years
- Expect your income to increase over time
- Believe interest rates will stay steady or drop in the future
Adjustable Rate Mortgage (ARM) FAQs
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The pros include lower initial rates, lower starting payments and more flexibility if you plan to move or refinance within a few years. The cons include the possibility of higher payments later if interest rates go up.
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With a fixed-rate mortgage, your interest rate and monthly payment stay the same for the life of the loan. With an ARM, your rate is fixed for an initial period (3,5 or 7 years at Landmark) and then adjusts annually based on market conditions.
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Your monthly payment may increase or decrease annually depending on market conditions. However, ARMs come with built-in caps that limit how much your rate can rise each year and over the life of the loan.
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ARMs can be a smart choice for homebuyers who expect to move, refinance or pay off their mortgage within a few years or those who want to take advantage of lower payments upfront while planning for future income growth.