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:
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ARMs usually start with lower introductory interest rates than fixed‑rate mortgages
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ARM rates can change over time, while a fixed‑rate loan stays the same for the life of the loan
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ARMs may offer lower initial monthly payments, which can help with budgeting early on
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ARMs can be a good fit for buyers who expect to move or refinance before rates adjust
Explore Peak adjustable-rate mortgages
Searching for adjustable-rate mortgages? The following loans offered by Peak feature ARM options:
Fannie Mae and Freddie Mac loans can provide ARM options.
Our 0% down and 3% down mortgages offer ARM rates.
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.
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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.
All loans subject to credit approval. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications and collateral 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.