Open a calculator
Rates & Loans

Adjustable-Rate Mortgage (ARM)

A mortgage with a low fixed rate for an initial period that then adjusts periodically based on a market index.

What does adjustable-rate mortgage mean?

An ARM saves money early but exposes you to higher payments after it resets. It suits buyers who expect to move or refinance before the reset. Rate caps limit how high each adjustment and the lifetime rate can go.

Put it to use
Adjustable Rate Mortgage Calculator This calculator helps you to determine what your adjustable mortgage payments will be. ARM vs. Fixed Rate Mortgage Use this calculator to compare a fixed rate mortgage to a Fully Amortizing ARM.
Related terms
Fixed-Rate MortgageAPR (Annual Percentage Rate)
All glossary terms