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Lower initial rates with flexibility for short-term homeowners
An ARM starts with a fixed interest rate for an initial period, then adjusts periodically based on market conditions. This can offer lower initial payments.
Caps are often written as initial / periodic / lifetime, for example 2/1/5. Those numbers are percentage-point limits on how far the note rate can move, not a promise of what it will do.
After the fixed period, the rate is typically index plus margin, then limited by the caps. Many current ARMs use a SOFR-based index. This page does not quote a current ARM start rate.
A cap on the rate is not a cap on taxes, insurance, or HOA. The full payment can still rise when those change.
Fixed rate for 5 years, then adjusts annually. Often used when the plan is to sell or refinance before the first adjustment — not a promise that you will.
Fixed rate for 7 years, then adjusts annually.
Fixed rate for 10 years, then adjusts annually. Longer fixed period, still an ARM after that date.
Interest-only is a different payment machine: principal is not required during a stated period. That is not an ARM teaser and not a temporary buydown. Interest-only: who it is for.
Send details for notary, loan signing, property questions, or anything that needs a follow-up from our team.
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures