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Get lower initial interest rates and monthly payments than a fixed-rate mortgage with an ARM loan.

Apply for an ARM

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Loan Options

7/6 or 10/6 ARM



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Payment Caps

Limit Payment Increases


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Rate Locks

Up to 270 Days



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Down Payments

As Low as 5%


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What Is an Adjustable-Rate Mortgage?

An adjustable-rate mortgage (ARM) begins at a fixed rate for a set amount of years, then has the ability to fluctuate periodically. We offer two ARM options for homebuyers:

Conventional 7/6
This offers a fixed rate for 7 years. Then, rate adjustments are possible every 6 months thereafter.

Conventional 10/6
This offers a fixed rate for 10 years. Then, rate adjustments are possible every 6 months thereafter.

ARM icon of house with moneyWhy Choose an Adjustable-Rate Mortgage?



ARMs can provide lower initial interest rates and initial monthly payments than a fixed-rate mortgage, giving you better affordability due to lower upfront payments.



An ARM offers greater flexibility, making it ideal for borrowers anticipating big changes. For example, if you plan to move or sell your house, you can enjoy a lower, fixed-rate for a set period, then sell before the adjustable phase begins.


Payment Caps

ARMs limit the amount of rate change that can occur in certain periods of time when the rate becomes variable. There is a cap on how high or low the interest rate can go over the life of the loan.


Payments Can Decrease

Falling interest rates can drive down the index against which your lender benchmarks your ARM. If this occurs after your fixed term of 7 or 10 years, your monthly payment will drop. On the other hand, your payments could also increase based on the index.


Low Down Payments

A down payment is the amount of money that the homebuyer pays out-of-pocket towards purchasing the home With Midland States Bank, our ARMs require as low as 5% down.

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Partnering with Midland States Bank
When you choose Midland States Bank, you'll experience several benefits:
  • Online application: Apply for an ARM in no time, wherever you are using your computer or mobile device.
  • Competitive rates: Start saving money with our competitive rates.
  • Full-service approach: Our experts can provide assistance at every step.
  • World-class customer service: We go above and beyond to ensure you have the best loan experience possible.
  • Mortgage expertise: Our mortgage experts have the knowledge and experience to assist with various needs.

Frequently Asked Questions

It depends on your goals and comfort level. If you plan to sell your home or pay off the mortgage before the adjustable rate increases, you'll save money. However, an ARM may not be the right option if you don't plan on selling and want consistent mortgage payments.

An ARM’s initial rate is fixed for a specified number of years at the beginning of the loan term and then adjusts every 6 months for the remainder of the term. The rate consists of a predetermined margin and will fluctuate due to variations in the index, which acts as the rate’s benchmark.

  • What is the Margin? The margin is a percentage point that remains the same throughout the life of the loan. Once the initial term ends, the new rate is determined by adding the margin to the index.
  • What is the Index? Midland States Bank recognizes the Secured Overnight Financing Rate (SOFR) as the index for ARMS. SOFR is the successor to LIBOR.

With a fixed-rate mortgage, the interest rate and your monthly principal remain the same throughout the loan's life span. An adjustable-rate mortgage offers interest rates that periodically change.

Why Midland States Bank?
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Midland States Bank is a financial services company specializing in adjustable-rate mortgages for customers in Illinois and Missouri. We provide a range of services and industry expertise to assist new and experienced home buyers. Take advantage of our homebuyer tools.

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How to Get Started

Contact us today to speak with a mortgage expert and learn more about our ARM mortgage loans. If you're ready to begin the process, start our online application!

Start Your Mortgage Application

Meet Our Mortgage Experts

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house-icon Equal Housing Lender. Loans subject to credit approval and eligibility requirements. Bank NMLS #411141. To learn more, visit Member FDIC.