Adjustable Rate Mortgage

Why pay the higher rate?

An adjustable-rate mortgage can lower your initial monthly payment and may fit if you plan to refinance, sell, or own the home for only a few years.

EstaR Mortgage
Lower initial payment strategy
How ARMs work

A fixed start, then a variable rate

Unlike fixed-rate mortgages, the interest rate on an ARM can change periodically after the initial fixed period ends.

The initial interest rate is often lower than a fixed-rate mortgage, which can make an ARM worth considering if your timeline and risk tolerance fit.

Lower initial monthly payment.
Useful if you expect to move or refinance.
Can help when prevailing fixed rates are high.
Needs a clear plan for the adjustable period.

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