What are some strategies for managing the risk of an ARM?

Adjustable Rate Mortgage (ARM) Feature lower interest rate and payments for a fixed period at the beginning of the loan term. For all standard ARM plans, there is not a lifetime interest rate floor other than the applicable mortgage margin. Page 4. © 2021 Fannie Mae. Trademarks of ... Let's look at an example: The most common adjustable-rate mortgage is a 5/1 ARM. This means you will have an initial period of five years (the “5”), during ... Today's ARM mortgage rates. As of Friday, May 02, 2025, the national average 5/1 ARM interest rate is 6.19%, up compared to last week's of 6.08%. The national ... Aug 20, 2018 ... Hybrid ARMs require full income documentation and substantial down payments. Borrowers should be aware that while their payments are the same ... Jul 1, 2023 ... ADJUSTABLE RATE MORTGAGE POOLS AND LOAN PACKAGES. — ... after the first year, the interest rate of each mortgage in an ARM pool or loan. Dec 22, 2023 ... A 5/1 ARM is an adjustable-rate mortgage with an interest rate that is fixed for the first 5 years, then adjusts once every year for the rest of ... ARMs begin with a fixed interest rate and then adjust up or down after the initial term. The initial rate is generally lower and lasts for a set period of time. A Frontwave Adjustable-Rate Mortgage (ARM) gives you the flexibility to start with lower monthly payments and adjust as needed. This disclosure describes the features of the Adjustable Rate Mortgage (ARM) Program you are considering. Information on other ARM programs is available on ...