{"id":21972,"date":"2025-10-27T17:55:21","date_gmt":"2025-10-27T17:55:21","guid":{"rendered":"https:\/\/incredipros.com\/?p=21972"},"modified":"2025-10-27T17:55:22","modified_gmt":"2025-10-27T17:55:22","slug":"pros-and-cons-of-an-adjustable-rate-mortgage-arm","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=21972","title":{"rendered":"Pros And Cons Of An Adjustable-Rate Mortgage (ARM)"},"content":{"rendered":"<div id=\"\">\n<div class=\"overflow-hidden relative bg-blue-50 aspect-video w-full rounded-lg\"><\/div>\n<p>\n            Images by GettyImages; Illustration by Hunter Newton\/Bankrate\n        <\/p>\n<\/p><\/div>\n<div>\n<div id=\"block_6136661edec056013400cbfb6a627494\" class=\"key-takeaways sm:border-l-4 border-(--accent) sm:pl-8 my-8 relative\" style=\"--accent: var(--color-blue-medium)\">\n    <!-- htmlmin:ignore --><\/p>\n<h2 class=\"heading-4 mt-0 mb-4 text-crop-none max-sm:flex max-sm:items-center max-sm:gap-4\" id=\"key-takeaways\" data-position=\"0\" data-beam-element-viewed=\"\" data-id=\"br-h2-0-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Key takeaways\" data-outcome=\"\">\n    <span class=\"shrink-0\">Key takeaways<\/span><br \/>\n        <span class=\"max-sm:h-0.5 max-sm:w-full max-sm:w-full max-sm:bg-(--accent) max-sm:rounded-full max-sm:block\"\/><br \/>\n    <\/h2>\n<p>    <!-- htmlmin:ignore --><\/p>\n<ul class=\"flex flex-col text-gray-700 mb-0 gap-2 list-disc\">\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at periodic intervals.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            ARMs have low fixed interest rates at their onset, but often become more costly after the rate starts fluctuating.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            ARMs tend to work best for those who plan to sell the home before the loan\u2019s fixed-rate phase ends. Otherwise, they\u2019ll need to refinance or be able to afford periodic jumps in payments.\n                                                <\/li>\n<\/ul>\n<\/div>\n<p>Because they offer lower introductory interest rates compared to current fixed-interest mortgages, adjustable-rate mortgages (ARMs) are growing more popular. Your mortgage broker may have even recommended one as an affordable way to get into a home. These mortgages feature a fixed rate for an initial period, after which the interest moves up or down at regular intervals for the remainder of the loan\u2019s term. However, an ARM\u2019s variability \u00a0has downsides. Here\u2019s how to know if you should get an adjustable-rate mortgage.<\/p>\n<h2 id=\"pros-v-cons\" data-position=\"1\" data-beam-element-viewed=\"\" data-id=\"br-h2-1-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Adjustable-rate mortgage pros and cons\" data-outcome=\"\">Adjustable-rate mortgage pros and cons<\/h2>\n<p>When deciding whether an<br \/>adjustable rate mortgage (ARM)<br \/>is right for you, consider these benefits and drawbacks.<\/p>\n<div class=\"flex flex-col gap-8 my-6\">\n<div class=\"ProsAndConsList\" data-js-selector=\"ProsAndConsList\">\n<div class=\"ProsAndConsItem\">\n        <!-- htmlmin:ignore --><\/p>\n<h3 class=\"ProsAndConsItem-header\">\n    Pros of an adjustable-rate mortgage<br \/>\n    <\/h3>\n<p>    <!-- htmlmin:ignore --><\/p>\n<ul class=\"ProsAndConsItem-list\">\n<li>\n                    <strong>Lower introductory rates:\u00a0<\/strong>An ARM often comes with a lower initial interest rate than that of a comparable fixed-rate mortgage \u2014 at least for the loan\u2019s fixed-rate period. If you\u2019re planning to sell before the fixed period is up, an ARM can save you a bundle on interest.\n                <\/li>\n<li>\n                    <strong>Lower initial monthly payments:\u00a0<\/strong>A lower rate also means lower mortgage payments (at least during the introductory period). You can use the savings on other housing expenses or stash it away to put toward your future \u2014 and potentially higher \u2014 payments.\n                <\/li>\n<li>\n                    <strong>Monthly payments might decrease:<\/strong> If prevailing market interest rates have gone down at the time your ARM resets, your monthly payment will also fall. (However, some\u00a0ARMs do set interest-rate floors, limiting how far the rate can decrease.)\n                <\/li>\n<li>\n                    <strong>Could be good for investors:\u00a0<\/strong>An ARM can be appealing to investors who want to sell before the rate adjusts, or who will plan to put their savings on the interest into extra payments toward the principal.\n                <\/li>\n<li>\n                    <strong>Flexibility to refinance:<\/strong> If you\u2019re nearing the end of your ARM\u2019s introductory term, you can opt to refinance to a fixed-rate mortgage to avoid potential interest rate hikes.\n                <\/li>\n<\/ul><\/div>\n<div class=\"ProsAndConsItem\">\n        <!-- htmlmin:ignore --><\/p>\n<h3 class=\"ProsAndConsItem-header\">\n    Cons of an adjustable-rate mortgage<br \/>\n    <\/h3>\n<p>    <!-- htmlmin:ignore --><\/p>\n<ul class=\"ProsAndConsItem-list\">\n<li>\n                    <strong>Monthly payments might increase:<\/strong> The biggest disadvantage (and biggest risk) of an ARM is the likelihood of your rate going up. If rates have risen since you took out the loan, your payments will increase when the loan resets. Often, there\u2019s a cap on the rate increase, but it can still sting and eat up more funds that you could use for other financial goals.\n                <\/li>\n<li>\n                    <strong>More uncertainty in the long term<\/strong><strong>:\u00a0<\/strong>If you intend to keep the mortgage past the first rate reset, you\u2019ll need to plan for how you\u2019ll afford higher monthly payments long term. If you end up with an unaffordable payment, you could default, harm your credit and ultimately face foreclosure. If you need a stable monthly payment \u2014 or simply can\u2019t tolerate any level of risk \u2014 it\u2019s best to go with a\u00a0fixed-rate mortgage.\n                <\/li>\n<li>\n                    <strong>More complicated to prepay:<\/strong> Unlike a fixed-rate mortgage, adding extra to your monthly payment won\u2019t drastically shorten your loan term. This is because of how ARM interest rates are calculated. Instead, prepaying like this will have more of an effect on your monthly payment. If you want to shorten your term, you\u2019re better off paying in a large lump sum.\n                <\/li>\n<li>\n                    <strong>Can be harder to qualify for:\u00a0<\/strong>It can be more difficult to\u00a0qualify for an ARM compared to a fixed-rate mortgage. You\u2019ll need a\u00a0higher down payment of at least 5 percent, versus 3 percent for a conventional fixed-rate loan. Plus, factors like your credit score, income and DTI ratio can affect your ability to get an ARM.\n                <\/li>\n<\/ul><\/div>\n<\/div><\/div>\n<div class=\"Callout flex flex-col gap-y-6 border-4 border-solid border-blue-100 rounded-lg py-8 px-6 md:px-10 mt-8 mb-16\">\n            <!-- htmlmin:ignore --><\/p>\n<h3 class=\"heading-3 my-0 text-crop-none text-blue-700\">\n    Interest-only ARMs<br \/>\n    <\/h3>\n<p>    <!-- htmlmin:ignore --><\/p>\n<p>\n        Your monthly payments are guaranteed to go up if you opt for an interest-only ARM. With this type of loan, you\u2019ll pay only interest for a set time. When that ends, you\u2019ll pay both interest and principal. This bigger bite out of your budget could negate any interest savings if your rate were to adjust down.<\/p>\n<\/p><\/div>\n<h2 id=\"best-for\" data-position=\"2\" data-beam-element-viewed=\"\" data-id=\"br-h2-2-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Who is an adjustable-rate mortgage best for?\" data-outcome=\"\">Who is an adjustable-rate mortgage best for?<\/h2>\n<p>So, why would a homebuyer choose an adjustable-rate mortgage? Here are a few situations where an ARM might make sense:<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong>You don\u2019t plan to stay in the home for a long time.<\/strong> If you know you\u2019re going to sell a home within five to 10 years, you can opt for an ARM, taking advantage of its lower rate and payments, then sell before the rate adjusts.<\/li>\n<li>\n<strong>You plan to refinance.<\/strong> If you expect rates to drop before your ARM rate resets, taking out an ARM now, and then <u>refinancing to a lower rate<\/u> at the right time could save you a considerable sum of money. Keep in mind, though, that if you refinance during the intro rate period, your lender might charge a fee to do so.<\/li>\n<li>\n<strong>You\u2019re starting your career. <\/strong>Borrowers soon to leave school or early in their careers who know they\u2019ll earn substantially more over time might also benefit from the initial savings with an ARM. Ideally, your rising income would offset any payment increases.<\/li>\n<li>\n<strong>You\u2019re comfortable with the risk. <\/strong>If you\u2019re set on buying a home now with a lower payment to start, you might simply be willing to accept the risk that your rate and payments could rise down the line, whether or not you plan to move. \u201cA borrower might perceive that the monthly savings between the ARM and fixed rates is worth the risk of a future increase in rate,\u201d says Pete Boomer, head of mortgage at Regions Bank in Birmingham, Alabama.<\/li>\n<\/ul>\n<h2 id=\"why-are-they-popular\" data-position=\"3\" data-beam-element-viewed=\"\" data-id=\"br-h2-3-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Why ARMs are popular right now\" data-outcome=\"\">Why ARMs are popular right now<\/h2>\n<p>At the beginning of 2022, very few borrowers were bothering with ARMs \u2014 they accounted for just 3.1 percent of all mortgage applications in January, according to the Mortgage Bankers Association (MBA). Fast-forward to October 2025, and that figure has tripled to 9.3 percent.<\/p>\n<p>Here are some of the reasons why ARMs are popular right now:<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong>Lower interest rates:<\/strong> Compared to fixed-interest mortgage rates, which remained around 6.2 percent at the end of 2025, ARMs currently have lower introductory rates. These lower rates give buyers more purchasing power \u2014 especially in markets where home prices remain high and affordability is a challenge.<\/li>\n<li>\n<strong>Ability to refinance:<\/strong> If you opt for an ARM for a lower initial rate and mortgage rates come down in the next few years, you can refinance to reduce your monthly payments further. You can also <u>refinance to a fixed-rate mortgage<\/u> if you want to keep that lower rate for the life of the loan. Check with your lender if it charges any fees to refinance during the initial rate period.<\/li>\n<li>\n<strong>Good option for some young families: <\/strong>ARMs tend to be more popular with younger, higher-income households with bigger mortgages, according to the <u>Federal Reserve Bank of St. Louis<\/u>. Higher-income households may be able to absorb the risk of higher payments when interest rates increase, and younger borrowers often have the time and potential earning power to weather the ups and downs of interest-rate trends compared to older borrowers.<\/li>\n<\/ul>\n<h2 id=\"other-types\" data-position=\"4\" data-beam-element-viewed=\"\" data-id=\"br-h2-4-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Other loan types to consider\" data-outcome=\"\">Other loan types to consider<\/h2>\n<p>Along with ARMs, you should consider a variety of loan types. Some may have a more lenient down payment requirement, lower interest rates or lower monthly payments than others. Options include:<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong><u>15-year fixed-rate mortgage<\/u><\/strong><strong>:<\/strong> If it\u2019s the interest rate you\u2019re worried about, consider a 15-year fixed-rate loan. It generally carries a lower rate than its 30-year counterpart. You\u2019ll make bigger monthly payments but pay less in interest and pay off your loan sooner.<\/li>\n<li>\n<strong><u>30-year fixed-rate mortgage<\/u><\/strong><strong>:<\/strong> If you want to keep those monthly payments low, a 30-year fixed mortgage is the way to go. You\u2019ll pay more in interest over the longer period, but your payments will be more manageable.<\/li>\n<li>\n<strong><u>Government-backed loans<\/u><\/strong><strong>:<\/strong> If it\u2019s easier terms you crave, <u>FHA<\/u>, USDA or VA loans often come with lower down payments and looser qualifications.<\/li>\n<\/ul>\n<h2 id=\"faq\" data-position=\"5\" data-beam-element-viewed=\"\" data-id=\"br-h2-5-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"FAQ about adjustable-rate mortgages\" data-outcome=\"\">FAQ about adjustable-rate mortgages<\/h2>\n<ul class=\"Accordion w-full align\">\n<li x-id=\"['panel-how-does-an-adjustable-rate-mortgage-work', 'heading-how-does-an-adjustable-rate-mortgage-work']\" x-data=\"{ expanded: 0 }\" class=\"Accordion-item\">\n<button class=\"Accordion-titleContainer py-4 px-3 sm:px-6 group sm:py-6\" type=\"button\" :id=\"$id('heading-how-does-an-adjustable-rate-mortgage-work')\" :aria-controls=\"$id('panel-how-does-an-adjustable-rate-mortgage-work')\" :aria-expanded=\"expanded ? true : false\" x-on:click=\"expanded = !expanded\" :data-outcome=\"expanded ? 'open_accordion' : 'close_accordion'\"><!-- htmlmin:ignore --><\/p>\n<h3 class=\"Accordion-title my-0 mr-2 md:flex-1\">\n    How does an adjustable-rate mortgage work?<br \/>\n    <\/h3>\n<p><!-- htmlmin:ignore --><span class=\"Accordion-icon Icon mb-0 block leading-none Icon--sm icon-base-blue-600\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><title>Caret Down Icon<\/title>\n<path d=\"M12 17.152c-.33 0-.675-.131-.94-.378L3.384 9.09a1.32 1.32 0 0 1 0-1.86c.51-.51 1.351-.51 1.862 0L12 13.977l6.755-6.747c.51-.51 1.351-.51 1.862 0 .51.51.51 1.35 0 1.86l-7.694 7.684a1.295 1.295 0 0 1-.94.378H12Z\" class=\"icon-base\"\/><\/svg><\/span><\/button><\/p>\n<div class=\"Accordion-contentWrapper\" :id=\"$id('panel-how-does-an-adjustable-rate-mortgage-work')\" :aria-labelledby=\"$id('heading-how-does-an-adjustable-rate-mortgage-work')\" x-show=\"expanded\" x-collapse=\"\" role=\"region\" style=\"height: 0; overflow: hidden; display: none;\">\n<div class=\"Accordion-content text-gray-700 px-3 pb-4 sm:px-6 sm:pb-6\">\n<p dir=\"ltr\">An adjustable-rate mortgage (ARM) has an initial fixed interest rate period, typically for three, five, seven or 10 years. Once that period ends, the interest rate adjusts at preset times, such as every six months or once per year, for the remainder of the loan term. Your new monthly payment can rise or fall along with the general\u00a0mortgage rate trends.<\/p>\n<\/div>\n<\/div>\n<\/li>\n<li x-id=\"['panel-what-are-examples-of-arm-loans', 'heading-what-are-examples-of-arm-loans']\" x-data=\"{ expanded: 0 }\" class=\"Accordion-item\">\n<button class=\"Accordion-titleContainer py-4 px-3 sm:px-6 group sm:py-6\" type=\"button\" :id=\"$id('heading-what-are-examples-of-arm-loans')\" :aria-controls=\"$id('panel-what-are-examples-of-arm-loans')\" :aria-expanded=\"expanded ? true : false\" x-on:click=\"expanded = !expanded\" :data-outcome=\"expanded ? 'open_accordion' : 'close_accordion'\"><!-- htmlmin:ignore --><\/p>\n<h3 class=\"Accordion-title my-0 mr-2 md:flex-1\">\n    What are examples of ARM loans?<br \/>\n    <\/h3>\n<p><!-- htmlmin:ignore --><span class=\"Accordion-icon Icon mb-0 block leading-none Icon--sm icon-base-blue-600\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><title>Caret Down Icon<\/title>\n<path d=\"M12 17.152c-.33 0-.675-.131-.94-.378L3.384 9.09a1.32 1.32 0 0 1 0-1.86c.51-.51 1.351-.51 1.862 0L12 13.977l6.755-6.747c.51-.51 1.351-.51 1.862 0 .51.51.51 1.35 0 1.86l-7.694 7.684a1.295 1.295 0 0 1-.94.378H12Z\" class=\"icon-base\"\/><\/svg><\/span><\/button><\/p>\n<div class=\"Accordion-contentWrapper\" :id=\"$id('panel-what-are-examples-of-arm-loans')\" :aria-labelledby=\"$id('heading-what-are-examples-of-arm-loans')\" x-show=\"expanded\" x-collapse=\"\" role=\"region\" style=\"height: 0; overflow: hidden; display: none;\">\n<div class=\"Accordion-content text-gray-700 px-3 pb-4 sm:px-6 sm:pb-6\">\n            ARMs vary in terms of the length of their introductory period and how often the rate adjusts during the variable-rate period. For example, 5\/6 and\u00a05\/1 ARMs have fixed rates for the first five years, and then the rates change every six months (5\/6 ARMs) or annually (5\/1 ARMs); 10\/6 and\u00a010\/1 ARMs operate similarly, except they have 10-year introductory periods (rather than five-year ones).\n        <\/div>\n<\/div>\n<\/li>\n<li x-id=\"['panel-where-can-you-find-an-adjustable-rate-mortgage', 'heading-where-can-you-find-an-adjustable-rate-mortgage']\" x-data=\"{ expanded: 0 }\" class=\"Accordion-item\">\n<button class=\"Accordion-titleContainer py-4 px-3 sm:px-6 group sm:py-6\" type=\"button\" :id=\"$id('heading-where-can-you-find-an-adjustable-rate-mortgage')\" :aria-controls=\"$id('panel-where-can-you-find-an-adjustable-rate-mortgage')\" :aria-expanded=\"expanded ? true : false\" x-on:click=\"expanded = !expanded\" :data-outcome=\"expanded ? 'open_accordion' : 'close_accordion'\"><!-- htmlmin:ignore --><\/p>\n<h3 class=\"Accordion-title my-0 mr-2 md:flex-1\">\n    Where can you find an adjustable-rate mortgage?<br \/>\n    <\/h3>\n<p><!-- htmlmin:ignore --><span class=\"Accordion-icon Icon mb-0 block leading-none Icon--sm icon-base-blue-600\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><title>Caret Down Icon<\/title>\n<path d=\"M12 17.152c-.33 0-.675-.131-.94-.378L3.384 9.09a1.32 1.32 0 0 1 0-1.86c.51-.51 1.351-.51 1.862 0L12 13.977l6.755-6.747c.51-.51 1.351-.51 1.862 0 .51.51.51 1.35 0 1.86l-7.694 7.684a1.295 1.295 0 0 1-.94.378H12Z\" class=\"icon-base\"\/><\/svg><\/span><\/button><\/p>\n<div class=\"Accordion-contentWrapper\" :id=\"$id('panel-where-can-you-find-an-adjustable-rate-mortgage')\" :aria-labelledby=\"$id('heading-where-can-you-find-an-adjustable-rate-mortgage')\" x-show=\"expanded\" x-collapse=\"\" role=\"region\" style=\"height: 0; overflow: hidden; display: none;\">\n<div class=\"Accordion-content text-gray-700 px-3 pb-4 sm:px-6 sm:pb-6\">\n            Most mortgage lenders offer fixed- and adjustable-rate loans, though the offerings and terms vary greatly. Lenders provide weekday mortgage rates to Bankrate\u2019s comprehensive national survey, which shows the latest marketplace average rates for various purchase loans, including\u00a0current adjustable-rate mortgage rates.\n        <\/div>\n<\/div>\n<\/li>\n<\/ul>\n<div class=\"HelpfulCTA mx-auto flex flex-col items-center gap-6 my-6 py-12 text-base border-y border-gray-200\" data-helpful-cta=\"\" data-beam-element-viewed=\"\" id=\"did-you-find-this-helpful\" data-type=\"cta\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Did you find this page helpful?\">\n<div class=\"HelpfulCTA-initial w-full flex flex-col items-center gap-4\" data-cta-initial=\"\">\n<div class=\"HelpfulCTA-question text-lg font-bold text-center text-gray-900\">\n            Did you find this page helpful?<\/p>\n<div id=\"hLKh76Te7S\" class=\"hidden\">\n<div class=\"wysiwyg wysiwyg--sm wysiwyg--flush max-w-xs\">\n<p class=\"mb-6 text-base\">\n                            <strong class=\"block font-bold text-gray-900\">Why we ask for feedback<\/strong><br \/>\n                            Your feedback helps us improve our content and services. It takes less than a minute to<br \/>\n                            complete.\n                        <\/p>\n<p>Your responses are anonymous and will only be used for improving our website.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Help us improve our content<\/p>\n<div class=\"HelpfulCTA-actions flex gap-4 mt-2\">\n            <button type=\"button\" class=\"HelpfulCTA-btn HelpfulCTA-btn--yes border border-2 border-blue-600 text-blue-600 rounded px-6 py-2 transition font-semibold flex items-center gap-2 hover:bg-blue-50\" data-cta-yes=\"\" data-beam-element-clicked=\"\" id=\"did-you-find-this-helpful-yes\" data-type=\"button\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Yes\" data-outcome=\"response submitted\"><br \/>\n                <span class=\"Icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><title>Thumbs Up Icon<\/title><path d=\"M13.165 2.175c.322 0 .57.022.774.065.796.161 1.43.624 1.85 1.345.71 1.216.722 3.067.023 5.499h.516c2.28 0 3.422 0 4.337.548a3.844 3.844 0 0 1 1.721 2.25c.29 1.032 0 2.13-.592 4.336l-.516 1.926c-.312 1.151-.484 1.786-.882 2.324a3.368 3.368 0 0 1-1.442 1.098c-.625.247-1.28.248-2.475.248l-.021.01h-4.595c-.42 0-.636 0-.84-.032a4.19 4.19 0 0 1-.635-.15c-.204-.065-.387-.162-.763-.355l-1.69-.856c-.014.034-.026.069-.043.102a2.334 2.334 0 0 1-1.044 1.044c-.495.247-1.012.248-1.948.248h-.161c-.936 0-1.453 0-1.947-.248a2.333 2.333 0 0 1-1.044-1.044C1.5 20.038 1.5 19.52 1.5 18.585v-7.683c0-.936 0-1.452.248-1.947A2.387 2.387 0 0 1 2.792 7.91c.494-.248 1.01-.247 1.947-.247h.16c.937 0 1.454 0 1.95.247.353.177.653.44.875.763.64-.606 1.788-2.184 3.31-5.142.183-.366.312-.603.538-.819.193-.193.462-.355.72-.441.302-.097.539-.097.873-.097ZM4.739 9.288c-.624 0-1.076 0-1.227.076a.721.721 0 0 0-.323.322c-.075.15-.075.603-.075 1.216v7.683c0 .624 0 1.076.075 1.227.065.14.183.248.323.323.151.075.603.075 1.227.075h.16c.625 0 1.078 0 1.228-.075a.722.722 0 0 0 .323-.323c.075-.15.075-.603.075-1.227v-7.683c0-.624 0-1.065-.075-1.227a.672.672 0 0 0-.323-.322c-.15-.075-.603-.076-1.227-.076h-.161v.01ZM13.057 3.8c-.14 0-.226 0-.259.011-.032 0-.086.043-.107.064a2.98 2.98 0 0 0-.226.399c-2.187 4.272-3.53 5.647-4.33 6.092.003.162.004.34.004.536v7.82l2.217 1.122c.28.14.42.216.56.27.107.032.214.064.332.075.151.021.314.021.626.021h4.594c1.022 0 1.539 0 1.862-.129a1.84 1.84 0 0 0 .763-.58c.215-.28.355-.808.613-1.765l.517-1.927c.495-1.85.775-2.873.603-3.475a2.309 2.309 0 0 0-1-1.313c-.538-.323-1.594-.323-3.51-.323h-1.129c-.226 0-.473 0-.72-.15a1.087 1.087 0 0 1-.464-.614c-.075-.301 0-.528.076-.754.957-2.97.603-4.26.301-4.777-.183-.312-.44-.506-.774-.57-.14-.033-.377-.033-.549-.033Z\" class=\"icon-base\"\/><\/svg><\/span> <span class=\"text-base leading-4\">Yes<\/span><br \/>\n            <\/button><br \/>\n            <button type=\"button\" class=\"HelpfulCTA-btn HelpfulCTA-btn--no border-2 border-blue-600 text-blue-600 rounded px-6 py-2 transition font-semibold flex items-center gap-2 hover:bg-blue-50\" data-cta-no=\"\" data-beam-element-clicked=\"\" id=\"did-you-find-this-helpful-no\" data-type=\"button\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"No\" data-outcome=\"response submitted\"><br \/>\n                <span class=\"Icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><title>Thumbs Down Icon<\/title><path d=\"M19.26 2.175c.936 0 1.454 0 1.949.247.452.226.818.592 1.044 1.043.247.495.248 1.012.248 1.948v7.678c0 .936 0 1.453-.248 1.948a2.333 2.333 0 0 1-1.044 1.042c-.495.248-1.013.248-1.95.248h-.16c-.937 0-1.454 0-1.95-.248a2.33 2.33 0 0 1-.885-.777c-.637.596-1.79 2.176-3.314 5.155-.183.365-.312.602-.538.828a1.924 1.924 0 0 1-.722.441c-.258.086-.484.097-.742.097l.022-.011a5.39 5.39 0 0 1-.905-.064 2.741 2.741 0 0 1-1.852-1.345c-.71-1.216-.721-3.066-.022-5.496h-.516c-2.283 0-3.424 0-4.34-.548a3.843 3.843 0 0 1-1.722-2.248c-.29-1.033 0-2.13.593-4.324l.517-1.925c.312-1.162.484-1.786.882-2.323.377-.495.872-.871 1.443-1.097.624-.248 1.281-.248 2.476-.248h4.597c.42 0 .635 0 .84.032.215.032.431.086.636.15.193.065.387.162.753.345l1.702.864c.017-.04.033-.082.053-.122a2.333 2.333 0 0 1 1.044-1.043c.496-.247 1.013-.247 1.95-.247h.16ZM7.503 3.798c-1.022 0-1.54 0-1.862.13-.302.118-.56.322-.765.58-.215.28-.345.775-.614 1.753l-.517 1.926c-.495 1.85-.775 2.871-.602 3.474a2.308 2.308 0 0 0 1 1.312c.539.323 1.594.322 3.51.322h1.142c.236 0 .473 0 .72.15.227.14.388.367.453.625.075.28 0 .516-.075.742-.959 2.969-.603 4.27-.301 4.775.183.312.44.506.774.57.162.033.41.033.572.033.128 0 .203 0 .236-.01.021 0 .085-.044.107-.065.032-.032.14-.237.227-.399 2.208-4.308 3.556-5.671 4.352-6.102a39.945 39.945 0 0 1-.003-.523v-7.79L13.63 4.175c-.28-.14-.41-.215-.56-.27a1.796 1.796 0 0 0-.344-.085c-.151-.022-.313-.01-.625-.022H7.503Zm11.596.001c-.625 0-1.077 0-1.228.076a.72.72 0 0 0-.323.322c-.075.15-.075.603-.075 1.226v7.68c0 .623 0 1.075.075 1.226.075.14.183.247.323.322.15.075.603.075 1.228.075h.16c.625 0 1.078 0 1.228-.075a.778.778 0 0 0 .324-.322c.075-.151.075-.603.075-1.227V5.423c0-.623 0-1.076-.075-1.226a.722.722 0 0 0-.324-.322c-.15-.076-.603-.076-1.227-.076h-.161Z\" class=\"icon-base\"\/><\/svg><\/span> <span class=\"text-base leading-4\">No<\/span><br \/>\n            <\/button>\n        <\/div>\n<\/p><\/div>\n<p>    <!-- Yes Form --><\/p>\n<p>    <!-- No Form --><\/p>\n<div class=\"HelpfulCTA-thankyou flex flex-col items-center gap-2\" data-cta-thankyou=\"\" style=\"display:none;\">\n<p>Thank you for your<br \/>\n            feedback!<\/p>\n<p>Your input helps us improve our<br \/>\n            content and services.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<p>Read the full article <a href=\"https:\/\/www.bankrate.com\/mortgages\/pros-and-cons-arm\/\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at periodic intervals. ARMs have low fixed interest rates at their onset, but often become more costly after the rate starts fluctuating. ARMs tend to work best for those who plan to sell the home<\/p>\n","protected":false},"author":1,"featured_media":21973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[],"class_list":{"0":"post-21972","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-homes"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pros And Cons Of An Adjustable-Rate Mortgage (ARM) | IncrediPros<\/title>\n<meta name=\"description\" content=\"Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/incredipros.com\/?p=21972\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pros And Cons Of An Adjustable-Rate Mortgage (ARM) | IncrediPros\" \/>\n<meta property=\"og:description\" content=\"Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at\" \/>\n<meta property=\"og:url\" content=\"https:\/\/incredipros.com\/?p=21972\" \/>\n<meta property=\"og:site_name\" content=\"IncrediPros\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-27T17:55:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-27T17:55:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/incredipros.com\/?p=21972#article\",\"isPartOf\":{\"@id\":\"https:\/\/incredipros.com\/?p=21972\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/incredipros.com\/#\/schema\/person\/780bbc4cd0333994745122c9e8e5a639\"},\"headline\":\"Pros And Cons Of An Adjustable-Rate Mortgage (ARM)\",\"datePublished\":\"2025-10-27T17:55:21+00:00\",\"dateModified\":\"2025-10-27T17:55:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/incredipros.com\/?p=21972\"},\"wordCount\":1624,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/incredipros.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/incredipros.com\/?p=21972#primaryimage\"},\"thumbnailUrl\":\"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg\",\"articleSection\":[\"Homes\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/incredipros.com\/?p=21972#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/incredipros.com\/?p=21972\",\"url\":\"https:\/\/incredipros.com\/?p=21972\",\"name\":\"Pros And Cons Of An Adjustable-Rate Mortgage (ARM) | IncrediPros\",\"isPartOf\":{\"@id\":\"https:\/\/incredipros.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/incredipros.com\/?p=21972#primaryimage\"},\"image\":{\"@id\":\"https:\/\/incredipros.com\/?p=21972#primaryimage\"},\"thumbnailUrl\":\"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg\",\"datePublished\":\"2025-10-27T17:55:21+00:00\",\"dateModified\":\"2025-10-27T17:55:22+00:00\",\"description\":\"Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at\",\"breadcrumb\":{\"@id\":\"https:\/\/incredipros.com\/?p=21972#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/incredipros.com\/?p=21972\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/incredipros.com\/?p=21972#primaryimage\",\"url\":\"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg\",\"contentUrl\":\"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/incredipros.com\/?p=21972#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/incredipros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Pros And Cons Of An Adjustable-Rate Mortgage (ARM)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/incredipros.com\/#website\",\"url\":\"https:\/\/incredipros.com\/\",\"name\":\"IncrediPros\",\"description\":\"Latest Personal Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/incredipros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/incredipros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/incredipros.com\/#organization\",\"name\":\"IncrediPros\",\"url\":\"https:\/\/incredipros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/incredipros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/incredipros.com\/wp-content\/uploads\/2024\/03\/d-icon.png\",\"contentUrl\":\"https:\/\/incredipros.com\/wp-content\/uploads\/2024\/03\/d-icon.png\",\"width\":512,\"height\":512,\"caption\":\"IncrediPros\"},\"image\":{\"@id\":\"https:\/\/incredipros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/incredipros.com\/#\/schema\/person\/780bbc4cd0333994745122c9e8e5a639\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/incredipros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d9712434f1a26cf97165a2d1eec1ebc76c3ebf856de2b444c71150b833e8aae2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d9712434f1a26cf97165a2d1eec1ebc76c3ebf856de2b444c71150b833e8aae2?s=96&d=mm&r=g\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/incredipros.com\"],\"url\":\"https:\/\/incredipros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Pros And Cons Of An Adjustable-Rate Mortgage (ARM) | IncrediPros","description":"Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/incredipros.com\/?p=21972","og_locale":"en_US","og_type":"article","og_title":"Pros And Cons Of An Adjustable-Rate Mortgage (ARM) | IncrediPros","og_description":"Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at","og_url":"https:\/\/incredipros.com\/?p=21972","og_site_name":"IncrediPros","article_published_time":"2025-10-27T17:55:21+00:00","article_modified_time":"2025-10-27T17:55:22+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/incredipros.com\/?p=21972#article","isPartOf":{"@id":"https:\/\/incredipros.com\/?p=21972"},"author":{"name":"News Room","@id":"https:\/\/incredipros.com\/#\/schema\/person\/780bbc4cd0333994745122c9e8e5a639"},"headline":"Pros And Cons Of An Adjustable-Rate Mortgage (ARM)","datePublished":"2025-10-27T17:55:21+00:00","dateModified":"2025-10-27T17:55:22+00:00","mainEntityOfPage":{"@id":"https:\/\/incredipros.com\/?p=21972"},"wordCount":1624,"commentCount":0,"publisher":{"@id":"https:\/\/incredipros.com\/#organization"},"image":{"@id":"https:\/\/incredipros.com\/?p=21972#primaryimage"},"thumbnailUrl":"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg","articleSection":["Homes"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/incredipros.com\/?p=21972#respond"]}]},{"@type":"WebPage","@id":"https:\/\/incredipros.com\/?p=21972","url":"https:\/\/incredipros.com\/?p=21972","name":"Pros And Cons Of An Adjustable-Rate Mortgage (ARM) | IncrediPros","isPartOf":{"@id":"https:\/\/incredipros.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/incredipros.com\/?p=21972#primaryimage"},"image":{"@id":"https:\/\/incredipros.com\/?p=21972#primaryimage"},"thumbnailUrl":"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg","datePublished":"2025-10-27T17:55:21+00:00","dateModified":"2025-10-27T17:55:22+00:00","description":"Images by GettyImages; Illustration by Hunter Newton\/Bankrate Key takeaways An adjustable-rate mortgage (ARM) is a mortgage whose interest rate resets at","breadcrumb":{"@id":"https:\/\/incredipros.com\/?p=21972#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/incredipros.com\/?p=21972"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/incredipros.com\/?p=21972#primaryimage","url":"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg","contentUrl":"https:\/\/incredipros.com\/wp-content\/uploads\/2025\/10\/1761587722_Homes-Pros-and-cons-of-an-adjustable-rate-mortgage.jpg","width":1280,"height":720},{"@type":"BreadcrumbList","@id":"https:\/\/incredipros.com\/?p=21972#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/incredipros.com\/"},{"@type":"ListItem","position":2,"name":"Pros And Cons Of An Adjustable-Rate Mortgage (ARM)"}]},{"@type":"WebSite","@id":"https:\/\/incredipros.com\/#website","url":"https:\/\/incredipros.com\/","name":"IncrediPros","description":"Latest Personal Finance News and Updates","publisher":{"@id":"https:\/\/incredipros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/incredipros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/incredipros.com\/#organization","name":"IncrediPros","url":"https:\/\/incredipros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/incredipros.com\/#\/schema\/logo\/image\/","url":"https:\/\/incredipros.com\/wp-content\/uploads\/2024\/03\/d-icon.png","contentUrl":"https:\/\/incredipros.com\/wp-content\/uploads\/2024\/03\/d-icon.png","width":512,"height":512,"caption":"IncrediPros"},"image":{"@id":"https:\/\/incredipros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/incredipros.com\/#\/schema\/person\/780bbc4cd0333994745122c9e8e5a639","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/incredipros.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d9712434f1a26cf97165a2d1eec1ebc76c3ebf856de2b444c71150b833e8aae2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d9712434f1a26cf97165a2d1eec1ebc76c3ebf856de2b444c71150b833e8aae2?s=96&d=mm&r=g","caption":"News Room"},"sameAs":["https:\/\/incredipros.com"],"url":"https:\/\/incredipros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/posts\/21972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/incredipros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21972"}],"version-history":[{"count":1,"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/posts\/21972\/revisions"}],"predecessor-version":[{"id":21974,"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/posts\/21972\/revisions\/21974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/incredipros.com\/index.php?rest_route=\/wp\/v2\/media\/21973"}],"wp:attachment":[{"href":"https:\/\/incredipros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/incredipros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/incredipros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}