An ARM could be an attractive option if you understand how the loan fits certain situations such as a time where interest rates are fluctuating or if you plan to stay in a home for a shorter period of time. You’ll first enjoy an introductory period where your rate is fixed, and then it will adjust with time.

Adjustable Rate Mortgages (ARM)

What is an Adjustable Rate Mortgage?
An ARM is a type of home loan with a variable interest rate. After an initial fixed rate period, rates may adjust over time in line with the housing market and other economic factors resulting in an increase or decrease in the monthly payment amount. This is an attractive option for buyers who aren’t averse to their monthly mortgage payments changing over time because they expect their income and ability to repay to cover any future changes.
How Does an Adjustable Rate Mortgage Work?
The interest rates on ARMs adjust periodically based on economic conditions, allowing borrowers to quickly get into a loan for the home of their dreams. These borrowers may also enjoy lower initial interest rates at the beginning of the mortgage, allowing them to settle into homeownership while preparing for possible changing payments down the line.
Generally, the initial fixed interest rate period lasts between three and ten years. During this time, the loan basically works like any fixed rate mortgage with rates remaining unchanged for the duration of the introductory period, regardless of changes in economic conditions. After the fixed rate period ends, the loan is subject to changing monthly payments on a periodic basis. This is called the adjustable period. In short, if interest rates rise across the board, your payment will go up. If they drop, your monthly payment likely will, too. We should note that there is a maximum your rate can adjust for the life of the loan, as well as at any adjustment period, which is a safeguard in case rates in the market dramatically increase between adjustments. Talk to one of our lending experts for more details.
The type of ARM you apply for will determine how long the introductory period is and how long the adjustable period lasts. For instance, a 5/1 ARM means that you will pay a fixed rate for the first five years of the loan, and then your rate is subject to change once each year thereafter through the remainder of the loan with limitations.

5/5 Adjustable Rate Mortgage
Greater Nevada Mortgage offers a 5/5 ARM that makes home ownership affordable for more people, especially those just starting out or restarting the mortgage process. The interest rate is fixed for the first five years and adjusts every five years thereafter for the life of the loan, and buyers can pay as little as 10% down payment to get started.
Loan Amounts
Loan amounts are up to $726,200 for a conforming loan, and a jumbo loan will be needed for amounts over that.
Interest Rates
The interest rate remains fixed for the first five years, and adjusts every five years thereafter through the life of the loan.
Repayment Terms
Standard loan term is 30 years.
Down Payment
5/5 ARMs are available with as little as 10% down.
Property Type
Primary residence and vacation/second homes are eligible.
Eligibility
FICO scores as low as 640 and borrowers must also qualify for membership with Greater Nevada Credit Union (which is open to anyone living or working in any of Nevada’s 17 counties, and members of their immediate family).
Common Questions about Adjustable Rate Mortgages
Got questions about an ARM from Greater Nevada Mortgage? We have answers.
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Who is an ARM right for?
ARMs are best for borrowers who want to maximize their purchasing power while keeping their monthly debt load to a minimum. It is also a good path for those who either believe interest rates will drop over time or those who expect their income to greatly increase over time. Buyers who do not intend to stay in the house beyond the introductory period can also benefit from the flexibility of ARM rates.
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Are jumbo loans available with adjustable rates?
Yes. For those seeking out loans that exceed conventional conforming loan limits, we offer jumbo loans on properties up to $1,000,000.
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What’s the difference between a fixed rate mortgage vs adjustable rate mortgage?
Simply put, a fixed rate mortgage features a single, unchanging interest rate from the beginning to the end of the loan. An adjustable rate mortgage features an introductory rate for a set period of time, followed by rates that can fluctuate on a set schedule until the end of the loan.
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What are the different types of mortgage loans?
From fixed rate loans to variable rate mortgages, Greater Nevada Mortgage offers a variety of types of home loans for every kind of potential homebuyer, including:
- Fixed rate mortgages
- Adjustable rate mortgages (ARMs)
- FHA loans
- USDA loans
- VA loans
- Jumbo loans
- Doctor loans
Pros and Cons of Adjustable Rate Mortgages
- Interest rates are generally fixed and low at the beginning of the loan period
- The possibility of paying less interest over time
- Excellent for those who plan to move within a few years of purchase
- Possibly higher overall payment for your loan
- Interest rates can rise with economic conditions out of your control with no guarantee of a refinance

Everyone Deserves a Home
According to the National Institute to End Homelessness, over 7,600 Nevadans experience homelessness on any given day, with nearly 20% being children and teens. Our Keys to Greater program donates a portion of the revenue from every new mortgage or refinance to community nonprofit organizations that address homelessness, which has resulted in over $179,500 donated since launching in 2021.

Next Steps to Lock in Your Rate
Ready to get started with an adjustable rate mortgage? Follow these steps with the help of a Greater Nevada Mortgage consultant and you’ll be on your way to home ownership!
Submit Your Application
It’s quick. It’s easy. It’s online. Plus, we have a mortgage documents checklist so you know what information to gather.
Let’s Chat
All your home loan questions are answered by your dedicated Mortgage Consultant and their team as you learn about what options work best for your goals.
Finalize Your Loan
When you’ve locked in a rate and monthly payment that’s comfortable for you, it’s time to finalize your loan.
APR = Annual Percentage Rate. APR is the cost to borrow money expressed as a yearly percentage. For mortgage loans, excluding home equity lines of credit, it includes the interest rate plus other charges or fees.
Rates and terms are subject to change without notice. Rates are for illustrative purposes only, and assumes a borrower with a credit score of 700 or higher which may be higher or lower than your individual credit score. Adjustable Rate Mortgage (ARM) loans are subject to interest rate, APR, and payment increase after each change period. For instance, a 5/5 ARM means that you will pay a fixed rate for the first five years of the loan, and then your rate is subject to change once every five years thereafter through the remainder of the loan. Interest rates and APRs are based on current market rates, and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Depending on loan guidelines, mortgage insurance may be required. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit history up to the time of closing. The estimated total closing costs in these rate scenarios are not a substitute for a Loan Estimate, which includes an estimate of closing costs, which you will receive once you apply for a loan. Actual fees, costs and monthly payment on your specific loan transaction may vary, and may include city, county or other additional fees and costs. Not all loan options are available in every state. Borrower is responsible for any property taxes as a condition of the loan. Membership with Greater Nevada Credit Union is required for select loan options. This is not a credit decision or a commitment to lend.
Please contact a Mortgage Consultant to learn about all details on loan options and programs available. You may contact one directly, or call Greater Nevada Mortgage at 775-888-6999 or 800-526-6999. We do business in accordance with the Federal Fair Housing Law and the Equal Opportunity Act, and the California Fair Employment and Housing Act.