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Loan

Adjustable-rate mortgages in Arizona

A rate that holds for the first years, then can change.

Ask about this loanHow applying works

What it is

How it works

An adjustable-rate mortgage starts with a rate that stays put for a set time, then moves with the market within limits. We show you how high the payment could go before you choose it.

Who it fits

  • Buyers who expect to sell or refinance before the first rate ends.
  • Buyers who expect their income to rise.
  • Buyers comfortable with a payment that can change.

Key facts

Good to know

  • An adjustable-rate mortgage (ARM) keeps its first rate for a set time, then adjusts on a schedule.
  • After that, the rate is an index, often SOFR, plus a margin set in your contract.
  • Caps limit how much the rate can change at the first adjustment, at each one after, and over the life of the loan.
  • The name of an ARM tells you how long the first rate lasts and how often it changes after that.
  • Your lender gives you the CFPB's booklet on adjustable-rate mortgages when you apply.

Calculator

Estimate a payment

You choose every number. The weekly average is a starting point, not a quote.

Payment

Move any number. The math runs on this device and nothing is sent.

$

$70,000 down

U.S. average the week of Nov 5. Not a quote.

Term
$
$
$

Monthly payment

$1,896.82/ month

Sample: $350,000 home, 20% down ($70,000), 360 monthly payments of $1,896.82 on a 30-year fixed loan at 7.18% interest (7.18% APR, assuming no points or fees). Taxes and insurance are extra, so your real payment will be higher. Not a quote.

Principal and interest
$1,896.82

Add tax and insurance for the full payment.

Loan amount
$280,000
Down payment
$70,000

Over 30 years

  • Principal$280,000
  • Interest$402,855

First payment: $221.49 principal and $1,675.33 interest.

This is an estimate, not a loan offer. A lender has to confirm it.

This is not a commitment to lend or lock a rate.

Rates change. Call us. (480) 297-8855

Costs and limits

What it costs

The kinds of costs, not amounts. Your Loan Estimate lists the numbers.

Costs to expect

  • The same kinds of closing costs as a fixed-rate loan.
  • Payment risk: when the rate adjusts, your payment can go up.
  • Mortgage insurance on some loans, as with a fixed rate.

Limits

  • Lenders often qualify you at a rate above the starting one, to make sure you can handle a rise.
  • ARMs are offered on conventional, jumbo, FHA, and VA loans, each with its own caps.
  • Plans to sell or refinance can change, so look at the payment at the caps.

Compared

How it compares

Next to Conventional loans in Arizona.

  • A fixed-rate conventional loan keeps the same rate for the life of the loan. An ARM can change after its first period.
  • An ARM's first rate is often lower than a fixed rate. That gap is the reason to choose one.
  • With a fixed rate, the risk of rising rates is the lender's. With an ARM, part of it is yours, within the caps.

Read about Conventional loans in Arizona

The process

From first call to closing

  1. Talk

    A short call about your goals, your timeline, and the kind of home you want. Ask us anything.

  2. Apply

    You fill out the application online. It asks for your Social Security number and documents, and we give you a clear list of what to send.

  3. Compare

    We compare lenders for your loan and show you the options side by side, with the tradeoffs explained.

  4. Close

    We stay with you through appraisal, underwriting, and signing, and keep you posted at each step.

Questions

Questions about this loan

Not here? Call (480) 297-8855.

How high can my payment go?

The caps in your contract set the most the rate can rise. Ask us for the payment if the rate rose as far as the caps allow, and decide if you could carry it.

Can I refinance out of an ARM?

Yes, if you qualify when the time comes. Rates and your finances then may differ from today, so do not count on it.

What is the index?

A published market rate the ARM follows, often SOFR. Your new rate is the index plus your margin, within the caps.

Reviews

From a client

Read all reviews

Chance is someone you can trust from the begging to the end of the transaction. I'm grateful to have found him to help me with the purchase of my home. Chance answered all of my questions and concerns, in detail. Couldn't have done it with out him. Buying a home can be challenging in number of things from the seller, realtor, title, etc. Chance made it easy for me, to understand, trust and believe that I was making the right decision . Thank you Chance, from my daughter and I. Sincerely, Edith Peralta, MBA/CCC

Edith Peralta

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