Adjustable Rate Mortgages - 3/1, 5/1 and 7/1 ARM

Every situation calls for a unique solution, which is why an adjustable rate mortgage may be a good fit to meet our borrowers needs.

If lowering your monthly mortgage payment for the short haul is your priority the an ARM may be a good fit

Interest rates are fixed for the initial term and then adjust annually.

Whether your looking to purchase a new or resale home, or looking to take advantage of historically low mortgage rates, we can help you achieve your borrowing goals

Apply for a Adjustable Rate Mortgage

3/1 Adjustable Rate Mortgage

An Adjustable Rate Mortgage (ARM) has monthly payments that are based on a 30 year repayment schedule and the interest rate remains fixed for the first three years. After fixed period of interest, the interest rate (monthly payments) may change year after. This is called the adjustment period.

The new adjusted rate is based upon changes in a financial index and is calculated by adding a pre-agreed specified amount to the index. The amount that is added to the index is called the margin (Interest the lender charges).

For Example: Let’s say the index equals 2.50% at the time of adjustment and the margin equals 2.50%, the new interest rate would be 5%. However, adjustable loans usually have an adjustment cap. So if the adjustment cap is 1%, the new rate would be 6%.

There is also a lifetime cap which limits how much the rate can go up or down during the life of the loan. So if the lifetime cap is 5% for the example given above then thus type of ARM is referred to as an 3/1/5.

An Adjustable Rate Mortgage can work out well for people who plan staying in their homes for a short period.

5/1 Adjustable Rate Mortgage

This type of loan is similar to the 3/1 ARM except the interest rate remains fixed for the first five years.

7/1 Adjustable Rate Mortgage

This type of loan is similar to the 3/1 ARM except that the interest rate remains fixed for the first seven years.

Key Features of an Adjustable Rate Mortgage
  • Initial interest rate for the initial period is typically below the prime rate making it attractive
  • After the initial period expires the ARM will convert to a pre-agreed Index rate
  • Best suited for borrowers who do not plan to stay in their homes for the long term
  • Generally a good option if you’re able to convert it to a fixed rate mortgage or able to refinance to a low competitive rate

Fast, Easy and Secure Online Mortgage Application
Apply for a Adjustable Rate Mortgage

Apply Now

Features of an Adjustable Rate Mortgage

All brokers, loans and lenders are not equal, which is why it’s important to have the right brokerage team on your side. Make an educated and informed decision with the help of our experts.

Faster Loan Closing

Most of our loans closing within a 2 to 4 week time period provided there are no complications or delays submitting documents to us

Customer Service

Unlike the big box banks and one man broker shops, we provide highly responsive and timely customer service to address your needs.

Enjoy the Best Mortgage Rates

As a volume based brokerage, we offer some of the best mortgage rates and terms in the industry. No haggle – No Bait and Switch.

Decide your Terms

We customize each mortgage with the borrower in mind, you determine your down-payment and tenure, and we find you the best lender for your needs.

Personal Loan - Eligibility

Any salaried, self-employed or professional Public and Private companies, Government sector employees including Public Sector is eligible for a home mortgage. We even have programs for Veteran and retired folks.

Down Payment

Minimum of 5% down payment required on purchases

Credit Score

Minimum credit score – usually 620


  • Post-foreclosure: can qualify after 7 years
  • Post-shortsale: Can Qualify after 2 years (LTV restrictions may apply)


Post- bankruptcy: can qualify after 4 years

Employment History

  • Last two years of W2 and Tax Returns
  • Last 4 months of pay stubs

Other Conditions

Other conditions may apply on a case-by-case basis and subject to lenders qualification criteria.