Adjustable-Rate Mortgages (ARMs) | Finance West Lending

Flexible Home Financing with an ARM Loan

At Finance West Lending, we know that most homeowners don’t stay in the same house for 30 years. That’s why an Adjustable-Rate Mortgage (ARM) can be a smart choice. With a lower introductory interest rate and reduced monthly payments in the early years, ARMs allow many buyers to save money upfront and invest those savings elsewhere.

If you’re planning to move, upgrade, or refinance within 5 to 10 years, an ARM may give you the best balance of affordability and flexibility.

Key Features of ARM Loans

Lower Introductory Rates – ARMs typically start with a lower rate than 30-year fixed mortgages.

Fixed for an Initial Term – Common options include 5/1, 7/1, or 10/1 ARMs, where your rate is fixed for the first 5, 7, or 10 years.

Adjusts with the Market – After the fixed period, your rate adjusts based on market conditions.

More Buying Power – Lower initial payments may help you qualify for a larger home.

Flexible Term Options – Perfect for buyers who don’t expect to keep their mortgage for 30 years.

ARM vs. 30-Year Fixed Loan

Lower Payments Upfront – ARMs start with lower interest rates than 30-year fixed mortgages, making your early monthly payments more affordable.

Best for Short-Term Owners – If you plan to move, sell, or refinance within the first 5–10 years, you’ll benefit from the lower rate.

Stability vs. Flexibility – A 30-year fixed offers long-term stability, while an ARM gives you short-term savings with the possibility of future adjustments.

ARM vs. 15- or 20-Year Fixed Loan

Lower Initial Costs – ARMs generally offer lower monthly payments than shorter-term fixed loans.

Faster Equity with Fixed Loans – A 15- or 20-year loan builds equity faster but comes with higher monthly payments.

Flexibility vs. Speed – ARMs are better if you want lower payments now and don’t plan to stay for decades, while shorter fixed terms are best if you want to pay off your home quickly.

Benefits of an ARM Loan

Save More in the Early Years – Lower initial payments free up money for savings, retirement, or home improvements.

Great for Short-Term Homeowners – Perfect for people who plan to relocate, upsize, or refinance before the fixed period ends.

Increased Buying Power – Lower qualifying payments may help you afford more home.

Potential to Refinance Later – If rates drop or your plans change, refinancing can lock in a new fixed loan.

Is an ARM Right for You?

An Adjustable-Rate Mortgage could be your best option if you:

Don’t expect to stay in your home for 30 years.

Want lower monthly payments in the first 5–10 years.

Are buying a starter home or planning to move within a decade.

Prefer to take advantage of today’s lower ARM rates and refinance later if needed.

Why Choose Finance West Lending?

At Finance West Lending, our mortgage experts help you compare ARM loans, 30-year fixed mortgages, and shorter fixed terms so you can choose the financing strategy that best matches your goals.

We’ll help you:

Explore ARM loan options like 5/1, 7/1, and 10/1 ARMs.

Compare introductory rates vs. long-term costs.

Understand potential adjustments and caps.

Build a smart plan for your homeownership timeline.

Start Exploring ARM Loan Options Today

At Finance West Lending, we believe your mortgage should fit your lifestyle, not the other way around. If you’re not planning to stay in one home for decades, an ARM could save you thousands.