How ARM loans work
An adjustable-rate mortgage (ARM) has a fixed-interest rate for the first 5, 7 or 10 years depending on your loan. After the initial period, the rate may adjust every 6 months for the remainder of the loan.
These examples are based on a 760 credit score, 30-year, $350,000 loan for a single-family home, primary residence with 20% down in Florida.
Keep in mind, the ARM loan examples used in the rate table are also based on a 30-year loan term.
5 year /6 month 30 year ARM
| Payments | Estimated Interest Rate | Estimated Monthly Payment |
|---|---|---|
| 1 - 60 | 6.250% | $2,155.01 |
| 61 - 66 | 7.750% | $2,467.51 |
| 67 - 360 | 8.250% | $2,574.38 |
Initial Interest Rate /
APR : 6.250% / 7.410%
First Adjusted Interest Rate : 1.500%
Subsequent Adjusted Interest Rate : 0.500%
Maximum Lifetime Rate : 11.250%
Estimated Maximum Monthly Payment : $3,245.62
Current Index Rate : 4.847%
Margin : 2.750%
First Adjusted Interest Rate Cap : 2.000%
Subsequent Adjusted Interest Rate Cap : 1.000%
Lifetime Cap : 5.000%
7 year /6 month 30 year ARM
| Payments | Estimated Interest Rate | Estimated Monthly Payment |
|---|---|---|
| 1 - 84 | 6.250% | $2,155.01 |
| 85 - 90 | 9.250% | $2,760.61 |
| 91 - 360 | 9.850% | $2,889.21 |
Initial Interest Rate / APR : 6.250% / 7.220%
First Adjusted Interest Rate : 3.000%
Subsequent Adjusted Interest Rate : 0.600%
Maximum Lifetime Rate : 11.250%
Estimated Maximum Monthly Payment : $3,197.63
Current Index Rate : 4.847%
Margin : 2.750%
First Adjusted Interest Rate Cap : 5.000%
Subsequent Adjusted Interest Rate Cap : 1.000%
Lifetime Cap : 5.000%
10 year /6 month 30 year ARM
| Payments | Estimated Interest Rate | Estimated Monthly Payment |
|---|---|---|
| 1 - 120 | 6.250% | $2,155.01 |
| 121 - 126 | 9.250% | $2,700.27 |
| 127 - 360 | 9.850% | $2,815.95 |
Initial Interest Rate / APR : 6.250% / 7.050%
First Adjusted Interest Rate : 3.000%
Subsequent Adjusted Interest Rate : 0.600%
Maximum Lifetime Rate : 11.250%
Estimated Maximum Monthly Payment : $3,093.54
Current Index Rate : 4.847%
Margin : 2.750%
First Adjusted Interest Rate Cap : 5.000%
Subsequent Adjusted Interest Rate Cap : 1.000%
Lifetime Cap : 5.000%
Last Updated: 05/08/2023