If you are planning to sell your home or refinance within a short period of time, you may want to consider an Adjustable Rate Mortgage (ARM). Begin your loan term with an interest rate that is generally lower than fixed-rate mortgages. Then after a predetermined amount of time, your interest rate will fluctuate for the remainder of the loan term.


  • Typically features a lower initial interest rate than a fixed-rate mortgage.
  • All ARMs are subject to rate caps for peace of mind.
  • Provides flexibility for selling or refinancing.


  • Monthly principal and interest payments may increase when the interest rate adjusts.
  • Monthly principal and interest payments may change every year after the initial fixed period is over.
  • If you choose an interest-only option, you cannot build equity through monthly interest-only payments without making voluntary principal payments during the interest only period.