//Adjustable-Rate Mortgages
Adjustable-Rate Mortgages2017-10-27T15:36:34+00:00

Home Loans with a Variable Interest Rate

Academy Mortgage’s Adjustable-Rate Mortgages (ARMs) offer several advantages for homebuyers, particularly homebuyers who don’t plan to own their home for longer than 10 years or plan to refinance when the initial fixed-rate period ends.

With an Adjustable-Rate Mortgage (ARM), the interest rate stays constant for a specified loan period and then fluctuates based on market conditions. An ARM typically has a lower interest rate than a 30-year Fixed-Rate Mortgage for the initial fixed-rate period. However, at the end of the initial fixed-rate period, the interest rate becomes variable and may move up or down depending on the direction of the mortgage index it is associated with.

ARM Program Highlights:

Monthly Payments

Interest Rates

See if you qualify

ARM Benefits:

  • Lower initial interest rate than a Fixed-Rate Mortgage for the same period.
  • Lower initial monthly mortgage payment than a Fixed-Rate Mortgage for the same period.
  • Payment caps, which limit the amount of rate change that can occur in certain time periods.
  • Lender’s margin is reflected in annual rate increase.
  • Loans with shorter initial fixed-rate periods usually have a lower interest rate.
  • Flexibility to refinance at the end of the loan term.
  • Money saved can be used as a down payment on a next home.
  • May be an alternative for buyers who do not qualify for a Fixed-Rate Mortgage.
  • Conventional, FHA, and VA loan options available.
  • Multiple term options available.

ARM Details:

ARMs allow you to lock-in an interest rate, which is usually lower than interest rates on fixed-rate mortgages, for a specified period of time and then consider selling your home or refinancing when the interest rate becomes variable and is at risk to fluctuate based on market conditions.

Academy Mortgage offers the following hybrid Adjustable-Rate Mortgages: 10/1 ARM, 7/1 ARM, 5/1 ARM, and 3/1 ARM. The first number (10, 7, 5, or 3) indicates the number of years in the initial fixed-rate period. The second number (1) indicates the adjustment interval, which is the period between potential rate changes. In other words, with these loans, the interest rate is fixed for the specified loan period (10, 7, 5, or 3 years) and then adjusts on an annual basis (every 1 year) for the remainder of the loan. The entire loan term for an ARM is typically 30 years.


Contact us right away and start on the path towards homeownership with an ARM from Academy!

Fill out this form and we will reach out to you right away to schedule a no-cost consultation. If you’re ready to get started, click “Pre-Qualify” below. You can also contact us by phone or email.

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Sample loan scenario: $200,000 purchase price, 5% down payment, $1,349.76/month (PITI), 10-year fixed 4.00% interest rate, 4.859% APR. All mortgage products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend. Please contact Academy Mortgage for more information.

*Academy Mortgage’s 3rd Quarter 2016 Customer Satisfaction Survey, with a sample size of 6,944 Responses

** Source: CoreLogic Marketrac Report for 2015, published in January 2016