Adjustable Rate Mortgage Loans

Home loans with rates that adjust throughout the entirety of the term.

An adjustable rate mortgage (ARM) is a home loan with an interest rate that adjusts on a predetermined basis. Most ARMs begin with a fixed rate for a certain period of time and then adjust up or down according to the index on which it is based, after the fixed period expires. An ARM typically includes several kinds of caps that control how your interest rate can adjust initially, subsequently and over the lifetime of your loan. Rates may rise or fall after the initial period.

An adjustable rate mortgage has:

  • Lower interest rates from the start that may rise or fall after the initial period.
  • A variety of term lengths to choose from.
  • Access to quick, local decisions.
  • Access to rates and applications online.

Adjustable-Rate Mortgage FAQs

What are the benefits of an adjustable-rate mortgage? ​

With an adjustable-rate mortgage or ARM, interest rates and closing costs are typically lower than the rates and fees associated with a conventional fixed-rate mortgage.

What are the features of an adjustable-rate mortgage?

The adjustable-rate mortgages offered at Field & Main are what we call “5/5 ARMs.” This means that if that interest rate adjusts, it will not adjust in the first five years of the loan. After that, the rate becomes variable and adjusts every 5 years and will not adjust again for another five years after the initial 5-year term. With an adjustable rate mortgage from Field & Main, our closing costs are typically lower than the closing costs associated with a conventional fixed-rate mortgage. Also, with an adjustable-rate mortgage, you get to decide how long of a term you would like.

What is the difference between an ARM and a fixed-rate mortgage?

With an ARM, you would be subject to a rate adjustment every five years for the life of your loan. With a fixed-rate mortgage, you get a consistent rate and a consistent payment.

Are there any disadvantages to an adjustable-rate mortgage?

Since an ARM features an adjustable rate, the rate is subject to change every five years, which could also change your payment amount.

Can you refinance an adjustable-rate mortgage?

Yes. If you qualify, you can refinance an ARM into a conventional, fixed-rate mortgage.

Is an ARM different than a variable rate mortgage?

An adjustable-rate mortgage (ARM) is the same thing as a variable rate mortgage.

What is the term of an adjustable-rate mortgage?

With our ARM loans, you can choose a 10–30-year term. If you do pay off the loan before the end of the term, we do not charge a pre-payment penalty. In fact, we do not charge a pre-payment penalty on any of our residential mortgage loans.

How do they adjust? Will I know when the rate goes up or down? What causes the rate to adjust?

Our ARM maintains the initial rate for a period of 5 years, and then adjusts up or down according to the interest rate index used by Field & Main to determine the rate. Rates may rise or fall after the initial period; however, your rate cannot adjust more than 2% at each adjustment. You will receive notification from Field & Main at least 210 days (about 7 months) before the first payment at the adjusted level.

Is An Adjustable Rate Mortgage Right For You?

We understand that the navigating home loans or mortgages on your own can be quite daunting. Rest assured that our mortgage lending team is standing by, ready to help answer your questions. If you dream of homeownership; we encourage you to fill out an application today. This will help us determine the best solution for your unique needs.

If you have questions about adjustable rate mortgages, feel free to call us at (888) 831-1500 or email us. You can also visit us at any of our convenient locations in Lexington, Henderson, or Cynthiana, Kentucky and Evansville, Indiana. We look forward to assisting in making your dream of homeownership a reality.

Fixed-Rate Loans

Lock in your interest rate so your payments stay the same for the entire life of the loan.

Government Guaranteed Loans

Affordable home loans for first-time home-buyers and people with lower credit scores.