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Adjustable-Rate Mortgages

Gain more flexibility and potential savings
with an adjustable-rate mortgage (ARM) from Peak.  

An ARM from Peak could be the right fit for you

You deserve a home loan that fits your needs and future goals. An adjustable-rate mortgage allows you to lock in a lower rate for up to 7 years. For new home buyers, an ARM can provide more savings, especially during the early years of their home loan.

Our team of home loan experts is happy to walk you through your home loan options so that you can confidently make the right decision. Call us today at (800) 258-3115 ext. 7920.

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Adjustable-rate mortgages versus fixed-rate mortgages

Adjustable-rate mortgages can offer a flexible path to homeownership, especially for those who are seeking lower initial payments. Compared to more traditional fixed‑rate loans, ARMs evolve with the market — sometimes in a buyer's favor, sometimes with a bit more fluctuation. Here are some key things to know about adjustable-rate mortgages:

  • ARMs usually start with lower introductory interest rates than fixed‑rate mortgages

  • ARM rates can change over time, while a fixed‑rate loan stays the same for the life of the loan

  • ARMs may offer lower initial monthly payments, which can help with budgeting early on

  • ARMs can be a good fit for buyers who expect to move or refinance before rates adjust

Adjustable-Rate Mortgage Rates

3/6 ARM

4.00% APR*
No fee

5/6 ARM

5.00% APR*
No Fee

7/6 ARM

5.25% APR*
No Fee

Explore Peak adjustable-rate mortgages

Searching for adjustable-rate mortgages? The following loans offered by Peak feature ARM options: 

Conventional Loans

Fannie Mae and Freddie Mac loans can provide ARM options. 

Zero or Low Down Payment Loans

Our 0% down and 3% down mortgages offer ARM rates. 

Jumbo Loans

We can provide ARMs with larger mortgage loans, too.

Ready to buy a home?

Our team of home loan experts is here to help make the home-buying process smoother and stress-free for you. We believe that everyone deserves a chance at homeownership – and work tirelessly to make our members’ dreams become reality. You’ll have someone to guide you every step of the way with Peak. Call (800) 258-3115 ext. 7920 to get started.

Your Home Ownership Journey Starts Here

Choose from a variety of mortgage loans that are designed to help you get into a new home quicker and easier.  
Apply Now View All Home Loans

Adjustable‑Rate Mortgage (ARM) FAQs

What is an adjustable‑rate mortgage?

An adjustable‑rate mortgage (ARM) is a home loan with an interest rate that can change over time. An ARM typically has a lower introductory rate, followed by periodic adjustments based on a market index.

How is an ARM different from a fixed‑rate mortgage?

Unlike a fixed‑rate mortgage, which keeps same interest rate for the entire loan term, an ARM’s rate can increase or decrease at scheduled intervals. As a result, your monthly payment may change over time.

What is an ARM adjustment period?

The adjustment period is how often your interest rate can change after the initial fixed period ends. Common intervals include every six months or annually.

What are ARM caps?

ARM caps limit how much your interest rate can increase at each adjustment and over the life of the loan. These caps help protect borrowers like you from large, sudden payment increases.

What is an initial ARM rate?

This is the introductory interest rate that applies during the first fixed period of the loan. It’s usually lower than the rate on a comparable fixed‑rate mortgage.

What determines ARM rate changes?

ARM adjustments are tied to a financial index, such as the Secure Overnight Financing Rate (SOFR) or treasury index, plus a lender‑defined margin. When the index changes, your rate can adjust accordingly.

Why would an adjustable‑rate mortgage work for me?

If you're planning to move or refinance before the first adjustment period, you can often benefit from the lower initial rate. An ARM can also be attractive if you're comfortable with potential payment changes.

How do I get an adjustable-rate mortgage?

Many financial institutions, such as Peak Credit Union, offer ARMs.

To apply for an adjustable-rate mortgage with Peak, go online, call (800) 258-3115, or visit any branch.

*APR = Annual Percentage Rate.

Example loan: $325,000 loan amount, 30-year term (360 months), 5/6 Adjustable-Rate Mortgage, 80% Loan-to-Value (LTV), sales price of $406,250 in Thurston County / WA, for the purchase of a single family residence that will be used as a primary residence, and the applicant has a credit score of 720. Initial interest rate of 5.250% fixed for the first 60 months, with an Annual Percentage Rate (APR) of 6.053%. During the initial 5-year fixed period, the monthly principal and interest payment would be $1,794.66. Beginning in the 61st month, and every six months thereafter, the interest rate may adjust based on the 30-Day Average Secured Overnight Financing Rate (SOFR) as published by the Federal Reserve Bank of New York, plus a margin of 2.75%. The adjustable rate will apply from the 61st month through the remainder of the 30 year loan term (months 61 through 360). Based on the current index value of 3.660%, your rate would be approximately 6.375% after the initial fixed period, resulting in a principal and interest payment of approximately $2,027.58. Since the index may change in the future, your interest rate and payment may increase or decrease after the initial fixed period and every six months thereafter. At the first adjustment, the interest rate may increase or decrease by no more than 2.00%. At each subsequent adjustment, the rate may increase or decrease by no more than 1.00%, subject to an overall maximum interest rate of 10.250%. The interest rate will never be lower than 5.250%. If the maximum lifetime rate were reached, the estimated maximum principal and interest payment would be $2,912.33.

Payments shown reflect principal and interest only and do not include amounts for property taxes, homeowners insurance, mortgage insurance, or escrow payments, if applicable; your actual payment obligation will be greater. Rates, APRs, and terms are based on current pricing as of 02/17/2026 and are subject to change without notice. Mortgage insurance may be required depending on loan-to-value and underwriting guidelines and, if required, may increase the APR and monthly payment.

All loans subject to credit approval. Minimum FICO is 620. Standard closing costs and fees still apply. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications, collateral, and market conditions. Mortgaged property must be located in Washington or Oregon state. Certain restrictions may apply. Contact a mortgage loan officer for more details. Equal housing opportunity lender. NMLS #530610. EHO_black