7/1 Adjustable Rate Mortgage
Benefits of an Adjustable Rate Mortgage
An adjustable-rate mortgage (ARM) can help to reduce monthly payments and in some cases cut long-term costs.
This mortgage may be a good option for you, if you:
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Don't plan to stay in your home or keep the mortgage for more than seven years.
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Are looking for a low initial interest rate loan. ARM loans may have a lower initial interest rate than a traditional fixed-rate mortgage.
What is a 7/1 ARM?
A 7/1 Adjustable-Rate Mortgage (ARM) has a fixed rate for the first 7 years and then adjusts annually for the rest of the term.
