Loan programs · ARM
A lower rate now, on your timeline.
An adjustable-rate mortgage starts with a lower fixed rate for an intro period — a smart fit when you won't hold the loan for the full 30 years. Here's how it works in Orange County.
What is an adjustable-rate mortgage (ARM)?
An ARM is a mortgage with a lower fixed rate for an initial period (like 5, 7, or 10 years) that can then adjust. It's a smart fit when you don't expect to keep the loan long-term. Choice Home Mortgage walks you through the real trade-offs and shops lenders so the structure fits your plans.
ARMs, explained in 30 seconds.
Not staying forever? Here's the whole idea — quick, clear, and friendly.
A loan that starts low, then adjusts.
An adjustable-rate mortgage (ARM) is a home loan that locks in a fixed interest rate for an opening stretch of years, then adjusts periodically after that based on a market index. The appeal is simple: that opening rate is usually lower than a comparable 30-year fixed, so your early payments can be lighter.
The catch is right in the name — after the fixed period, the rate can move. That’s why an ARM shines when you don’t plan to keep the loan long: if you expect to sell, pay it off, or refinance before the fixed period ends, you may capture the lower rate and be gone before any adjustment ever happens.
Because Choice Home Mortgage is a broker, not a bank, we don’t steer you into one institution’s ARM. We compare adjustable programs across many lenders and match the fixed period to your actual plan. Want the certainty of a payment that never changes instead? A conventional fixed-rate loan may be the better path — we’ll tell you straight.
What makes an ARM work for you.
Lower intro rate
An ARM starts with a fixed rate for an intro period — typically lower than a comparable 30-year fixed at the start.
Fixed for years first
Common ARMs hold that intro rate for 5, 7, or 10 years before they ever adjust. You get real runway.
Great if you won't stay long
If you expect to sell or refinance before the fixed period ends, an ARM can save you money up front.
Built-in rate caps
Modern ARMs include caps that limit how much your rate can move at each adjustment and over the life of the loan.
We shop the structure
Because we're a broker, we compare ARM programs across many lenders to match the fixed period to your plan.
One expert, start to finish
Owner Esther Buede walks you through how the adjustment works — personally, not a call-center queue.
ARM questions, answered.
What is an adjustable-rate mortgage?
An ARM is a home loan that starts with a fixed interest rate for an intro period, then adjusts periodically based on a market index. The headline benefit is that the intro rate is usually lower than a comparable fixed-rate loan — the trade-off is that it can move later.
What does a number like "5/6 ARM" mean?
The first number is how many years the rate stays fixed at the start — so a 5/6 ARM is fixed for 5 years. The second number is how often it can adjust after that — in this case every 6 months. We'll explain the exact structure of any program before you commit to anything.
When does an ARM make sense?
An ARM often fits when you don't expect to keep the loan past the fixed period — for example, if you plan to sell, pay it off, or refinance within a few years. In those cases you may capture the lower intro rate and move on before any adjustment happens.
How high can my rate go on an ARM?
ARMs include caps that limit how much the rate can rise at the first adjustment, at each later adjustment, and over the entire life of the loan. We walk through those caps with you so you understand the ceiling, not just the starting point.
Can I refinance out of an ARM later?
Yes. Many borrowers refinance into a fixed-rate loan before or during the adjustable period. As a broker, we're here for that next move too — we'll watch your situation and tell you honestly when a refinance makes sense.
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See if an ARM fits your plan.
One call with the owner — no queue, no pressure. We'll tell you honestly whether an ARM saves you money or whether a fixed-rate loan is the smarter call for your timeline.