Variable Rate Mortgages

Discover the flexibility of ARM Loans

If you are searching for a mortgage option that combines flexibility, lower initial interest rates, and the potential for long-term savings, Adjustable-Rate Mortgages (ARMs) might be the perfect fit! 
 

Benefits of an ARM Mortgage

  • Potentially lower rate and payment in the introductory period
  • Potential for the rate to adjust down, depending on the benchmark
  • Can be refinanced into a conventional fixed-rate mortgage
  • Lower upfront costs and fees
  • Greater flexibility to meet your needs
Unlike traditional fixed-rate loans, ARM loans start with a lower rate for an initial period—typically 5, 7, or 10 years—before rates adjust up or down annually based on market conditions. This makes them an attractive choice for homebuyers planning to move or refinance within a few years. 
A fixed-rate mortgage has an interest rate that is locked in when you obtain a loan. Some homebuyers prefer these because both their interest rate and monthly payments will not change, which offers predictability.

A variable-rate mortgage, also known as an adjustable-rate mortgage (ARM) has an interest rate that will be set for a period of time, with annual adjustments based on market rates. For example, if you have a 5/1 ARM your initial interest rate will be set for five years, with annual adjustments each year after.

Variable-rate mortgages often start with a lower interest rate than a fixed-rate mortgage, but that could change as interest rates fluctuate over time.

Some homebuyers prefer the predictability of a fixed rate mortgage, while others opt for an adjustable-rate mortgage if they can obtain a lower starting interest rate and anticipate that market rates will decline before their first readjustment, or they plan to sell their home before the readjustment happens.
With so many options, it can be difficult to know which mortgage is the best option for you or even where to start. That's where our lending pros can help! Contact us online or visit one of our 10 branches in West Central Arkansas and the River Valley: Mena, Paris, Wickes, Hatfield, Caulksville, Clarksville, Ozark, Waldron, Booneville, and Russellville.