Is An Adjustable-Rate Mortgage (ARM) For Me?

Since 2022 rates have climbed and with the Federal Reserve anticipating two more rate hikes in 2023 Americans have seen their monthly payments increase, leading to the return of Adjustable-Rate Mortgages. Though no one has a crystal ball many anticipate rates to lower in the next 18 to 24 months. In 2021, 2% of mortgage applications were for ARMs, while 2022 saw applications at 13% and
remained steady into 2023. Before choosing a mortgage program one should ask themselves the following.

How long do I anticipate on holding this current mortgage?

ARMs come with a fixed rate component for a period followed by a number that indicates how often the rate can adjust. For example, a 5/6 month ARM implies that the rate will be fixed for the first 5 years and then can adjust every 6 months after the fixed period. If you only plan on owning the home for 4 years, then a 5/6 month ARM would be a good choice. ARMs most commonly come with 7 or 10 year fixed portions and be refinanced just like a fixed mortgage giving the same flexibility.

How much money are you able to save by utilizing an adjustable-rate vs. fixed rate?

A $726,200 loan, comparing today’s average 30 Year Fixed Rate of 7.17% vs a 7/6 month ARM of 6.20%


The ARM provides a $467 monthly savings. If we take this $467 and multiply it by 72 months (number of months until the ARM adjusts) one would save $33,624 in the first 7 years. No refinance is going to cost this much.

Aaron Benton, Loan Officer, Movement Mortgage – Mobile 843-268-4814 – –