- Get a mortgage rate as low as 2.875% with the 5-year adjustable rate mortgage.
- Do you want to significantly reduce the cost of your mortgage?
- Do you plan to move or refinance in the next 5, 7 or 10 years?
- Do you want the lowest mortgage rate available?
If you answered yes to any of these questions, an adjustable rate mortgage might be right for you! Whether you choose the 5-year, the 7-year or the 10-year adjustable rate mortgage, you’ll get the lowest rate we offer and save thousands over a traditional fixed-rate mortgage during the initial fixed-rate period. Afterwards, the rate may change once per year.
Only Loanatik offers you the best selection of products, fantastic service and lowest costs. Talk to a loan officer today to learn about how getting the lowest rate isn’t always in your best interest and explore how better loan products can help you achieve your financial and personal goals.
Unlike those banks in America, we’re not stuck with years of legacy policies, useless procedures and red tape. We’ve built an entirely new mortgage experience, that speeds you through the application, approval and closing processes.
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How It Works
- Adjustable rate mortgage qualification requirements
- Refinance up to 95% of your primary home’s value Buy a home with as little as 5% down (primary home)
How an adjustable rate mortgage works
- Interest rates are fixed for a period of 5, 7 or 10 years.
- After the fixed-rate period, your interest rate may change once per year – either up or down depending on market conditions.
- Rate changes are capped at 5% above your initial fixed rate and 2% or 5% per adjustment period, which means you’re protected. For example, if your initial interest rate is 2.99%, your rate will never be higher than 7.99%, and it will never rise more than 2% per year after the fixed-rate period.
- Your actual payment will vary based on your situation and the current interest rates when you apply.
- You can pay your mortgage at any time without prepayment penalties.
- FHA and VA ARMs are also available for those who want the flexible guidelines of an FHA or VA loan.
Learn more about adjustable rate mortgages
- Adjustable Rate Mortgage Learning Center
- Know Your Mortgage: Adjustable Rate Mortgage
- Advantages of an Adjustable Rate Mortgage
- Adjustable Rate Mortgage Terms You Should Know – ARM Yourself with Knowledge
- Watch-It Wednesday: Types of Adjustable Rate Mortgages
Click to see our assumptions
- Mortgage rates could change daily.
- Actual payments will vary based on your individual situation and current rates.
- Some products may not be available in all states.
- Some jumbo products may not be available to first time home buyers.
- Lending services may not be available in all areas.
- Some restrictions may apply.
- Based on the purchase/refinance of a primary residence with no cash out at closing.
- We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 740; and an escrow account for the payment of taxes and insurance.
- The lock period for your rate is 40 days.
- The loan to value (LTV) ratio is 75%. If LTV > 80%, PMI will be added to your monthly mortgage payment, with the exception of Military/VA loans. Military/VA loans do not require PMI.
- Please remember that we don’t have all your information. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. Loanatik offers a wide variety of loan options. You may still qualify for a loan even if your situation doesn’t match our assumptions. To get more accurate and personalized results, please call 480-900-8485 to talk to one of our mortgage experts.
The initial payment on a 30-year $200,000 5-year Adjustable-Rate Loan at 2.875% and 75.00% loan-to-value (LTV) is $829.78 with 2 points due at closing. The Annual Percentage Rate (APR) is 3.885%. After the initial 5 years, the principal and interest payment will adjust. The fully indexed rate of 4.00% is in effect for the remaining 25 years and can change once every year for the remaining life of the loan. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Rate is variable and subject to change after 5 years.