Popular
ARMs: a lower rate for the years you'll actually be here.
Increasingly popular, ARMs can offer the best of both worlds: a lower interest rate and a fixed payment for a set period. A 5/6 ARM is fixed for five years and then adjusts every six months, which suits people who expect to move or refinance before the adjustment.
- Fixed period
- 5, 7, or 10 yrs
- Caps
- 2/1/5 typical
- Index
- SOFR
Best for
- Buyers planning to move within 7–10 years
- Borrowers who expect income growth
- Lowering the initial payment
How adjustments work
After the fixed period, the rate resets to an index (SOFR) plus a margin, subject to caps that limit how much it can move at the first adjustment, each later adjustment, and over the life of the loan.
Portfolio ARMs
Our portfolio 5/5 ARM adjusts only every five years and is priced off the bank's own cost of funds, which is why it's often the sharpest rate on our board.
Questions people ask
- Is an ARM risky?
- It depends on your horizon. If you'll sell or refinance before the first adjustment, you keep the lower rate and never see the risk. If you plan to stay 20 years, a fixed rate is usually the better tool.
Often compared with
Next step
Ready to talk to a lender who can actually decide?
Start the application online, or call and ask for the mortgage department. Either way, a real human in Crystal Lake or Appleton takes it from there.