What is an ARM?

An Adjustable-Rate Mortgage, or ARM, is a variable rate mortgage. While the interest rate on a fixed mortgage is set for the life of the loan, an ARM has a fixed interest rate for a given number of years and then adjusts once annually for a remaining time period. For example, a 10/1 ARM has a set interest rate for 10 years and can thereafter change once a year for 20 years.


With low initial interest rates and upfront savings, ARM loans are a popular option for many borrowers. These include those who are purchasing their first home and plan on moving before the loan adjusts or refinancing the loan within the fixed-rate window.


ARM terms and conditions are often complicated and can be difficult to understand, but the loan experts at Global Equity Finance can make it easier to decide whether an ARM is the right choice for you.

Benefits of an ARM

Lower Initial Payments

Compared to a fixed rate mortgage, an ARM affords you considerable savings due to lower interest rates during the initial fixed period.


If you plan on moving, selling your home or refinancing your mortgage within the initial fixed period, an ARM can offer significant savings.

Adjustment Caps

Interest rate and payment changes on an ARM are limited once the fixed period ends, meaning you will be able to budget for the years to come.

Potential Smaller Payments

Should prevailing interest rates fall and drive down the index that determines the adjustment on your ARM, you could find yourself making smaller monthly payments.

ARM Options

10/1 ARM

Fixed interest rate for 10 years then annual adjustment for 20 years

7/1 ARM

Fixed interest rate for 7 years then annual adjustment for 23 years

5/1 ARM

Fixed interest rate for 5 years then annual adjustment for 25 years

3/1 ARM

Fixed interest rate for 3 years then annual adjustment for 27 years


“Modern adjustable-rate mortgages are a vast improvement over older, comparable loans. They can deliver big savings with little to no risk.”

Roy Koldaro

NMLS ID #1241846 VP of Lending

VA Fixed Rate Mortgage ​

Perfect for borrowers looking for interest rate stability and affordable payments for the life of the loan. Buy or build a single family home, condo unit in VA-approved development, or manufactured home/lot.

VA Adjustable Rate Mortgage (ARM)

If you expect to receive Permanent Change of Station (PCS) Orders within five years, a 5/1 VA ARM can offer upfront savings and better flexibility for when you relocate.

VA Streamline Refinance (IRRRL)

The VA Interest Rate Reduction Refinance Loan (IRRRL) allows you to refinance your current VA mortgage to a lower interest rate. Streamlined to make refinancing fast and painless, VA does not require verification of income, employment, bank accounts, credit score, or home appraisal.

VA Cash Out Refinance

For homeowners who want to cash-out home equity to use for expenses such as paying off debt, school tuition, or home improvements. This option can also refinance a non-VA loan (such as FHA or USDA) into a VA loan, and finance up to 100% of the property value.


VA loans are an exceptional opportunity for our Veterans because they offer the lowest rates in the nation, there is no down payment, and fees are capped depending on status. We also offer a $1,000 best loan guarantee: no other lender will beat our Veterans loan programs.

Roy Koldaro

V.P. of Lending

ARM Qualifications

Credit preapproval: Getting preapproved for a loan has several benefits that make buying a home quicker and easier. The process will save you time as it helps you immediately identify which loans fit your budget. It can also shorten the closing process, which means your loan can get funded sooner. Lastly, preapproval can improve your credibility with lenders, letting them know upfront how qualified you are for a mortgage.


Down payment: Down payments for an ARM are typically the same as other traditional loans with a required minimum of 5%.


Maximum loan amount: The current maximum loan amount for a conforming ARM is $424,100. This amount may vary by region, but for loans above this amount (a non-conforming ARM), there are different requirements.

Loan program

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