Adjustable Rate
Mortgage
The Flexibility You Need
Bellwether's Adjustable Rate Mortgages (ARM) are home loans that are not fixed for the entire term of the loan. In general, ARM interest rates for the initial loan period are usually lower than Fixed Rate Mortgages. Most ARM loans have an initial period where the rate is fixed, but the rate can change after that. These loans involve more risk than Fixed Rate Mortgages, but they can also save you money.
Check out our handy Homebuyer's Guide for valuable information when buying and financing your new home.
Adjustable Mortgage Rate Table
*Loan approval, interest rate, and down payment required based on creditworthiness amount financed and the ability to repay. Loans with a down payment of less than 20% require mortgage insurance which could increase the monthly payment and Annual Percentage Rate. Escrow for Real Estate taxes may be required, which would increase your monthly mortgage payment. Property insurance is required, and flood insurance may be required. Other fees may be assessed as applicable.
The index for all Adjustable Rate Mortgages is the weekly average of the U.S. Treasury securities for the applicable term. The interest rate on the ARM will adjust periodically, which may result in an increase of the interest rate after closing. Rates, terms, and conditions are subject to change.
The 1/1 ARM offers a fixed rate for one year and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The 3/1 ARM offers a fixed rate for three years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The Seasonal Home 5/1 ARM offers a fixed rate for five years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 3.50 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The 5/1 ARM offers a fixed rate for five years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The 5/5 ARM offers a fixed rate for five years and adjusts to a 5-year ARM after that period. The interest rate and monthly payment may change every five years based on the 5-year U.S. Treasury, plus a margin of 2.50 percentage points. Caps are 2% initial, 2% annual, and 5% for the lifetime cap.
The Easy Start 5/5 ARM offers a fixed rate for five years and adjusts to a 5-year ARM after that period. The interest rate and monthly payment may change every five years based on the 5-year U.S. Treasury, plus a margin of 2.50 percentage points. Caps are 2% initial, 2% annual, and 5% for the lifetime cap.
The 7/1 ARM offers a fixed rate for seven years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 5% initial, 2% annual, and 5% for the lifetime cap.
The 10/1 ARM offers a fixed rate for ten years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 5% initial, 2% annual, and 5% for the lifetime cap.
For 1-4 family owner-occupied residence, condo, and one-unit second homes.
Caps
1/1, 3/1, Seasonal Home and 5/1 ARM CMT = 2/2/6
7/1 and 10/1 ARM CMT = 5/2/5
5/5 ARM CMT = 2/2/5
Index and Margin
Index: One Year US Treasury Bill. As of 11/15/2024: 4.35, Margin: 2.75%, Your rate will be rounded up to the nearest eighth. This applies to the 1/1, 3/1, 5/1, Construction 5/1, 7/1, and 10/1 products.
Index: One Year US Treasury Bill. As of 11/15/2024: 4.35, Margin: 3.5%, Your rate will be rounded up to the nearest eighth. This applies to the Seasonal Home.
Index: Five Year US Treasury Bill. As of 11/15/2024: 4.31, Margin: 2.50%, Your rate will be rounded up to the nearest eighth. This applies to the 5/5 and Easy Start products.
*Loan approval, interest rate, and down payment required based on creditworthiness amount financed and the ability to repay. Loans with a down payment of less than 20% require mortgage insurance which could increase the monthly payment and Annual Percentage Rate. Escrow for Real Estate taxes may be required, which would increase your monthly mortgage payment. Property insurance is required, and flood insurance may be required. Other fees may be assessed as applicable.
The index for all Adjustable Rate Mortgages is the weekly average of the U.S. Treasury securities for the applicable term. The interest rate on the ARM will adjust periodically, which may result in an increase of the interest rate after closing. Rates, terms, and conditions are subject to change.
The 1/1 ARM offers a fixed rate for one year and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The 3/1 ARM offers a fixed rate for three years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The Seasonal Home 5/1 ARM offers a fixed rate for five years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 3.50 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The 5/1 ARM offers a fixed rate for five years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 2% initial, 2% annual, and 6% for the lifetime cap.
The 5/5 ARM offers a fixed rate for five years and adjusts to a 5-year ARM after that period. The interest rate and monthly payment may change every five years based on the 5-year U.S. Treasury, plus a margin of 2.50 percentage points. Caps are 2% initial, 2% annual, and 5% for the lifetime cap.
The Easy Start 5/5 ARM offers a fixed rate for five years and adjusts to a 5-year ARM after that period. The interest rate and monthly payment may change every five years based on the 5-year U.S. Treasury, plus a margin of 2.50 percentage points. Caps are 2% initial, 2% annual, and 5% for the lifetime cap.
The 7/1 ARM offers a fixed rate for seven years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 5% initial, 2% annual, and 5% for the lifetime cap.
The 10/1 ARM offers a fixed rate for ten years and adjusts to a 1-year ARM after that period. The interest rate and monthly payment may change annually based on the 1-year U.S. Treasury, plus a margin of 2.75 percentage points. Caps are 5% initial, 2% annual, and 5% for the lifetime cap.
For 1-4 family owner-occupied residence, condo, and one-unit second homes.
Caps
1/1, 3/1, Seasonal Home and 5/1 ARM CMT = 2/2/6
7/1 and 10/1 ARM CMT = 5/2/5
5/5 ARM CMT = 2/2/5
Index and Margin
Index: One Year US Treasury Bill. As of 11/15/2024: 4.35, Margin: 2.75%, Your rate will be rounded up to the nearest eighth. This applies to the 1/1, 3/1, 5/1, Construction 5/1, 7/1, and 10/1 products.
Index: One Year US Treasury Bill. As of 11/15/2024: 4.35, Margin: 3.5%, Your rate will be rounded up to the nearest eighth. This applies to the Seasonal Home.
Index: Five Year US Treasury Bill. As of 11/15/2024: 4.31, Margin: 2.50%, Your rate will be rounded up to the nearest eighth. This applies to the 5/5 and Easy Start products.
Get Up to $750 Off Your Closing Costs
- Apply for and close on your first mortgage with Bellwether
- Open a Bellwether MyMoney Checking Account or Live Free Checking Account. If you currently have a checking account with us, that counts!
- Add Direct Deposit to your checking account. We’ve made switching over easier than ever with ClickSWITCH
*To qualify for the maximum $750 closing cost credit, before closing documents are prepared, you must (1) have or open the Bellwether MyMoney or Live Free checking account and (2) finish your direct deposit set up through ClickSWITCH. Direct deposit of a minimum of $1,000 monthly is required. Offer may be discontinued at any time. Offer is valid for new purchases only and not valid on refinances. Excludes No Closing Cost loan products. Mortgage approval is based on credit qualifications. Cannot be combined with any other mortgage discount or offer. Terms and conditions apply.
