A mortgage matched to your timeline.
An adjustable-rate mortgage isn't a trap and it isn't a shortcut. It's a tool that can suit some plans and not others. Theresa explains how it works in plain English so you can decide whether it belongs in yours.
A rate that can change over time
An adjustable-rate mortgage, or ARM, starts with an interest rate that stays the same for an initial period. After that, the rate may change according to the terms of the loan.
ARMs come in several structures, such as the 5/1, 5/5, 7/1 and 10/1. The first number tells you how many years the starting rate stays the same. How and when the rate can change after that is spelled out in the loan's terms, and if you're considering an ARM, your lender is required to give you information explaining how the adjustments work before you commit.
Fixed-rate vs. adjustable-rate
Neither one is better for everyone. They simply fit different plans.
The same rate for the life of the loan
- Your interest rate doesn't change
- Your principal and interest payment stays predictable
- Often a comfortable fit if you plan to stay for many years
A set starting period, then it may adjust
- The starting rate holds for an initial period
- After that, the rate may change under the loan's terms
- Often explored by people who expect to move or sell before the first adjustment
Terms vary by loan and lender. Theresa can lay a fixed and an adjustable option side by side using your actual numbers.
It usually comes down to your timeline
- A planned relocationYou expect a move for work or family before the first adjustment would arrive.
- A stepping-stone homeYou already see this home as a chapter, not the forever house.
- A plan to sellYou have a reasonable expectation of selling within the initial period.
- Comparing every optionYou'd simply like to see an ARM next to a fixed rate before you decide.
What to understand before choosing
None of this is a reason to avoid an ARM. It's what lets you choose one with your eyes open.
Payments may change
After the initial period, your rate and payment may go up or down under the loan's terms.
Plans can shift
Think about what you'd do if you end up staying longer than expected.
Read the terms
Each ARM explains how and when it adjusts. Theresa walks you through it before you sign.
Compare both paths
Seeing a fixed and an adjustable option together makes the trade-off clear.
How Theresa helps you decide
Share your plans
How long you expect to stay, and what matters most to you.
See the options
Fixed and adjustable choices laid side by side.
Understand the terms
How any adjustment would work, explained in plain language.
Choose and close
She stays with you from application through closing.
Frequently asked
What does the first number in a 5/1 ARM mean?
It's how long your initial interest rate stays the same: five years on a 5/1 or 5/5, seven on a 7/1 and ten on a 10/1. How the rate can change after that depends on the terms of the specific loan.
Will my ARM payment go up?
It may. After the initial period ends, the rate can adjust according to the loan's terms, and it could go up or down. That's why your timeline matters so much with this kind of loan.
Who usually explores an ARM?
Generally someone who is considering moving or selling before the first adjustment. If you plan to stay long term, a fixed-rate program is usually the more natural conversation to have.
Which ARM structures are available?
The 5/1 is typically the most common, and there are other options such as 5/5, 7/1 and 10/1. Availability and terms vary by lender, so Theresa will show you what fits your situation.
How do I know I understand the fine print?
If you're considering an ARM, your lender is required to give you information explaining how the adjustments work. Theresa will also walk you through it in plain language before you sign anything.
Ask the Huntress
Bring your plans and your questions. Theresa will lay the options side by side so you're choosing with confidence rather than guessing.
(913) 705-0049