Adjustable-Rate Mortgage Loans
An adjustable-rate mortgage (ARM) can be a great option for homebuyers looking to save money with a lower initial interest rate. Explore ARM mortgage options with competitive introductory rates and fixed-rate periods of 5, 7, or 10 years.
What is a Adjustable Rate Mortgage (ARM)?
An adjustable-rate mortgage (ARM) starts with a fixed interest rate for a set period, commonly 5, 7, or 10 years, before the rate can adjust.
Because ARMs often offer a lower initial rate than a 30-year fixed mortgage, they can help homebuyers lower monthly payments and save on interest during the initial fixed period.
ARMs can be especially useful if you expect to sell, refinance, relocate, or pay down the loan before the adjustable period begins.
ARM Example: A buyer in Houston chose a 5/1 ARM to purchase a $750,000 home. Because the ARM rate was 0.5% lower than a 30-year fixed, saving him over $3,000 a year in interest. He plans to refinance when rates fall, but in the meantime, he keeps thousands in savings every year.
Why Homebuyers Choose LendFriend for Adjustable-Rate Mortgages
Choosing an adjustable-rate mortgage is about more than finding a low introductory rate. At LendFriend Mortgage, we help borrowers evaluate ARM options alongside conventional, jumbo, and Non-QM mortgage programs so they can choose financing that fits their home, finances, and expected timeline.
Our clients consistently highlight our responsiveness, clear communication, competitive rates, and ability to solve mortgage scenarios that other lenders struggle with. We take the time to explain how the initial fixed-rate period works, when the interest rate can begin adjusting, applicable rate caps, estimated payments, and the potential savings compared with a 30-year fixed mortgage.
Borrowers choose LendFriend for ARMs because of:
- Competitive mortgage rates. We focus on finding attractive pricing that can help reduce monthly payments and borrowing costs.
- A broad range of loan programs. In addition to adjustable-rate mortgages, LendFriend offers conventional, jumbo, super-jumbo, bank statement, asset depletion, and other Non-QM mortgage options.
- Experience with complex borrowers. We regularly work with self-employed homebuyers, investors, high-net-worth borrowers, executives, and clients with income or assets that require a more customized mortgage solution.
- Clear guidance from application through closing. Our reviews frequently recognize the communication and hands-on attention clients receive throughout the mortgage process.
- Financing built around your timeline. An ARM can be particularly valuable when you expect to sell, refinance, relocate, receive future liquidity, or substantially pay down the mortgage during the initial fixed-rate period.
Whether you are considering a 5-year, 7-year, or 10-year ARM, LendFriend can help you evaluate the potential payment savings and determine whether an adjustable-rate mortgage makes sense for your home purchase.
Lower Your Monthly Payments with a ARM Loan
Adjustable-rate mortgages from LendFriend can offer lower monthly payments during the initial fixed period than a comparable 30-year fixed mortgage. That can help you preserve cash flow, increase purchasing power, or keep more money available for savings, investments, renovations, and other financial priorities.
Flexible 5, 7 and 10-year ARM Options
LendFriend offers multiple ARM options to match your expected timeline and financial goals. A 5/1 ARM may work well if you expect to sell or refinance within several years, while 7/1 and 10/1 ARMs provide longer initial fixed-rate periods for borrowers who want more time before the rate can adjust.Fast, Competitive Mortgage Financing
Our team combines competitive ARM rates with responsive service and an efficient closing process. We regularly work with conventional, jumbo, and specialty mortgage borrowers and help clients move quickly when timing matters.
Low-Cost Refinancing with Rate Rebound
If rates fall after you close, LendFriend’s Rate Rebound program can make refinancing more affordable by reducing many of the costs that can come with replacing your mortgage. This gives ARM borrowers a practical path to take advantage of lower future rates without letting refinance expenses erase the potential savings.
Who Are Adjustable-Rate Mortgages Best For?
Adjustable-rate mortgages can be especially attractive for borrowers taking out larger loans, where even a modest difference in interest rate can translate into meaningful monthly and annual savings.
ARMs may be a strong fit for:
Jumbo loan borrowers: On larger loan amounts, a lower initial ARM rate can produce substantial payment savings compared with a 30-year fixed mortgage.
Non-QM borrowers: Many bank statement, asset depletion, and other Non-QM loan programs offer ARM options that can improve cash flow while still providing several years of fixed payments.
Buyers who expect to refinance: If you believe rates may fall or your financial profile may improve, an ARM can provide a lower initial rate while giving you time to refinance later.
Borrowers with a shorter ownership horizon: If you expect to sell, relocate, or pay down a significant portion of the mortgage within 5, 7, or 10 years, an ARM may align well with your timeline.
The larger the mortgage, the more important the rate can become. For jumbo and Non-QM borrowers, the savings from the right ARM can be significant.
Start Your ARM Loan Application
Ready to see whether an adjustable-rate mortgage makes sense for your purchase or refinance? LendFriend can review your loan amount, credit profile, income, assets, property, and expected timeline to identify ARM options that fit your goals.
Here’s how to get started:
Apply online in minutes: Submit your information and give us a clear picture of your mortgage needs.
Review your ARM options: We’ll walk through available 5-year, 7-year, and 10-year ARM programs, including jumbo and Non-QM options when appropriate.
Move toward closing: Once you select a loan, our team will guide you through underwriting, documentation, and closing.
See Why Homebuyers and Homeowners Consider Us The Best Mortgage Broker
5/5 Star Reviews on Google, Zillow, and Experience.
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We worked with the LendFriend team and could not recommend it more. As first time home buyers, there is a lot to learn - and LendFriend know how to share their knowledge with patience and professionalism.For anyone considering working with them, just go ahead and give them a call. You will not regret it.
Jesper Holdensen
Closed June 2025 -
I had been looking for a house for 2-3 years and while it was a journey as a business owner with a difficult financial situation this company did what 6 others could not. They got me a jumbo loan based off my business income and when I needed more they just made it happen twice. This process of funding can be extremely difficult and basically a blow to the ego but Eric and his team are literally magicians and my fiancee and I are now closed on out dream house. I recommend them whole heartedly
Shawn Tassone, MD, PhD
Closed April 2025 -
Wow my husband and I were truly impressed with how easy the LendFriend team made our home buying experience. Eric and his team took extra care in explaining and outlining each step -- a real customer first experience. On top of that, each member of the team was incredibly knowledgeable, organized, and responsive; resulting in an expeditious close! The website promise of working around the clock to support you is 100% factual, we had staff answering questions late night and weekends. The entire team was a real pleasure to work with, so if you are looking for a mortgage broker look no further, LendFriend is the team for you! They will give you peace of mind, get you the best rates, and make you feel confident when buying your home :)
Sarah Carr
Closed May 2025 -
I have purchased 8 houses in 23 years and have never had an easier closing. Eric and his team have streamlined the process and were a pleasure to work with. They also saved us a lot of money on closing. I highly recommend LendFriend and his team.
April Magnia
Closed August 2025 -
Eric and LendFriend saved the day! We had a lender who struggled so terribly that the sellers were willing to put their property back on the market. Our realtor pulled the deal from the ashes and we chose LendFriend to make it right quickly. We closed a million plus VA loan in 3 weeks and now have our forever home. Thank you LendFriend, Eric, and Morgan!
Brian Sanford
Closed July 2025 -
Highly recommend LendFriend!!! As daunting as the process can be to get pre-approved for a mortgage loan, the entire team was great that we worked with that got us to the finish line. Each team member helped us in clearly communicating each step to ensure every step was smooth, in addition being available for a quick call to walk through our questions and concerns when needed. LendFriend was also very competitive with rates and dropped our interest rate last minute right before we closed! They got the job done and made it as stress free as possible.
Ingrid Eichenberger
Closed December 2024 -
I had a phenomenal experience working with Eric, Morgan, and Crystal at LendFriend and cannot recommend them enough. They helped me secure an asset depletion mortgage (30 year fixed rate), allowing me to qualify using my Bitcoin and Ethereum holdings. This enabled me to purchase an amazing home for my family while keeping and maintaining control of my hard assets... I worked with Eric, Morgan, and Crystal throughout the process. Communication was excellent, everything was explained clearly, and the overall experience was smooth... [Read the whole review by clicking the link below]
J
August 2025
FAQs – Adjustable Rate Mortgages
Is a 5-year ARM a good mortgage option?
A 5-year ARM typically offers the biggest initial rate savings compared with a 30-year fixed mortgage because the fixed-rate period is shorter. That can make it especially attractive for borrowers focused on lowering their monthly payment and interest costs during the first five years. A 5/1 or 5/6 ARM can be a strong fit when maximizing upfront savings is the priority.
Are ARMs a good option if I plan to sell my home in a few years?
They can be. If you expect to sell before the initial fixed-rate period ends, you may benefit from the lower introductory rate without ever reaching the adjustable period. An ARM for a shorter ownership timeline can be worth considering when you already expect to move within several years.
Why are adjustable-rate mortgages becoming more popular?
Adjustable-rate mortgages can become more attractive when the rate savings versus a fixed mortgage are meaningful, especially for borrowers with larger loan balances. That is one reason ARMs are making a comeback among buyers looking to reduce their initial monthly payment and interest costs.
Are ARMs a good option for jumbo loans?
How are ARM interest rates set?
ARMs start with a lower fixed rate (about .25%-.5% lower in this market) for the first 5–10 years, then adjust based on a market index plus a set margin. Because of this structure, ARM rates are usually lower than 30-year fixed rates, giving you immediate monthly savings. Read more in our guide: ARMs Make a Comeback.
Can an ARM help me afford a more expensive home?
Can I get an ARM with an asset depletion mortgage?
Yes. Some asset depletion programs offer adjustable-rate options for borrowers qualifying primarily with eligible assets rather than traditional employment income. An asset depletion mortgage calculator can help estimate how those assets may support mortgage qualification
Are adjustable-rate mortgages available with bank statement loans?
Yes. Bank statement loan programs may offer ARM options for self-employed borrowers who qualify using business or personal bank deposits instead of traditional tax-return income. A bank statement loan calculator can help estimate qualifying income before comparing available ARM options.
Are ARMs a good option for jumbo loans?
Yes. ARMs can be particularly attractive for jumbo loans because the larger loan balance makes even a modest difference in interest rate more meaningful. Borrowers with high-balance mortgages may be able to reduce their monthly payment and save significantly during the initial fixed period. ARMs can also be considered for a jumbo cash-out refinance.
How do I compare an ARM vs. a fixed-rate mortgage?
The difference comes down to the initial rate, monthly payment, expected time in the loan, and what could happen after the ARM begins adjusting. Our ARM vs. fixed mortgage calculator lets you compare estimated payments and interest costs to see how much an adjustable-rate mortgage could save during its initial fixed period.