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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

This table shows adjustments for a 5 year/ 6 month 30 year adjustable-rate mortgage.
Payments Estimated Interest Rate Estimated Monthly Payment
1 - 60 7.375% $2,417.36
61 - 66 8.875% $2,747.36
67 - 360 9.375% $2,859.77

7 year /6 month 30 year ARM

This table shows adjustments for a 7 year/ 6 month 30 year adjustable-rate mortgage.
Payments Estimated Interest Rate Estimated Monthly Payment
1 - 84 7.125% $2,358.01
85 - 90 10.125% $2,991.14
91 - 360 10.725% $3,123.24

10 year /6 month 30 year ARM

This table shows adjustments for a 10 year/ 6 month 30 year adjustable-rate mortgage.
Payments Estimated Interest Rate Estimated Monthly Payment
1 - 120 7.500% $2,447.25
121 - 126 10.500% $3,032.90
127 - 360 11.100% $3,154.51

Last Updated: 2/7/2024