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Enjoy Lower Initial Rates & Payments
An Adjustable-Rate Mortgage (ARM) is a type of home loan where the interest rate can change over time. For the first few years, your interest rate is fixed and doesn't change. This means your monthly payments stay the same during this time. After the initial fixed period, the interest rate can adjust as often as every 6 months. The new rate is based on a market rate plus a set amount. Down payment options can be as low as 5% with rate locks up to 270 days. Loan options vary, but popular options include a conventional 7/6 and 10/6.
ARMs may start with lower interest rates compared to fixed-rate mortgages, which can mean lower initial monthly payments.
If you plan to move or refinance before the adjustable period begins, you could save money with the lower initial rate.
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| Feature | Adjustable Rate Loan (ARM) | Fixed Rate Loan |
|---|---|---|
| Interest Rate | Variable; changes periodically after initial fixed period | Fixed for the entire term |
| Monthly Payments | Can increase or decrease over time | Consistent and predictable |
| Initial Rate | May be lower than fixed rate loans initially | Typically higher than initial rate of ARMs |
| Best For | Short-term savings, those who might refinance or sell before rate adjusts | Long-term stability, those who prefer predictable payments |
| Interest Rate | Variable; changes periodically after initial fixed period |
|---|---|
| Monthly Payments | Can increase or decrease over time |
| Initial Rate | May be lower than fixed rate loans initially |
| Best For | Short-term savings, those who might refinance or sell before rate adjusts |
| Interest Rate | Fixed for the entire term |
|---|---|
| Monthly Payments | Consistent and predictable |
| Initial Rate | Typically higher than initial rate of ARMs |
| Best For | Long-term stability, those who prefer predictable payments |
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Estimated monthly payment for a $180,000 7/6 adjustable-rate mortgage (ARM) at 6.76% Annual Percentage Rate (APR) would be approximately $1,166. Estimated monthly payment for a $180,000 10/6 ARM at 6.75% APR would be about $1,165. Payments do not include amounts for taxes, homeowner's insurance, or flood insurance (if required), and the actual payment will be higher. If the down payment is less than 20%, mortgage insurance may also be required, which could increase the monthly payment and APR. These examples are for illustration and subject to change.
Rate Caps: ARMs often have limits on how much the interest rate can increase at each adjustment period and over the life of the loan. These are called caps and they help protect you from significant rate hikes.
1Loans subject to credit approval. Applicants must use promo code 250 when submitting an online mortgage application or when meeting with their Mortgage Loan Originator. The free $250 eGift Card applies to loan applications on single-family, 1-4 unit properties for first-lien residential purchase mortgage loans only. Offer available on loan applications with Loan Estimate disclosures dated May 15, 2026 – July 15, 2026. This does not include pre-approval applications. Two-time close construction loans are not eligible for this offer; however, single close construction loans are eligible. No minimum loan amount is required to receive the offer. Standard loan program details still apply. All applications are subject to approval under Midland's underwriting guidelines. eGift is provided only upon loan approval and closing. eGift will be emailed to customers within 14 business days after the closing date unless otherwise stated. eGift may be reported as taxable income and produce a 1099-MISC. eGift is limited to one per loan. No cash equivalent or transfer of prize is permitted. Offer subject to change without notice. Offer cannot be combined with any other discounts, promotions, or incentives, such as Perks@Work or Community Hero Mortgage Program.
