Mortgage Approval Group
Adjustable-Rate Mortgages in Tampa & Florida
Adjustable-rate mortgages (ARMs) offer an initial fixed interest rate period followed by periodic rate adjustments based on market conditions. Mortgage Approval Group helps borrowers throughout Tampa Bay and Florida understand ARM loan options and evaluate whether an adjustable-rate mortgage may fit their goals.
What Is an Adjustable-Rate Mortgage?
An adjustable-rate mortgage (ARM) is a home loan with an interest rate that can change periodically after an initial fixed-rate period. During the initial fixed period, the interest rate remains constant. After that period ends, the rate adjusts at regular intervals based on a market index plus a margin set by the lender.
ARM loans are commonly described by their initial fixed period and adjustment frequency. For example, a 5/6 ARM has a fixed rate for the first five years, then adjusts every six months. A 7/6 ARM is fixed for seven years, then adjusts every six months. A 10/6 ARM is fixed for ten years before adjustments begin.
ARM rates are tied to a market index, such as the Secured Overnight Financing Rate (SOFR). The lender adds a margin to the index to determine the adjusted rate. Rate caps limit how much the rate can change at each adjustment and over the life of the loan.
Because the initial rate on an ARM is often lower than a comparable fixed-rate mortgage, ARMs may offer lower initial monthly payments. However, payments can increase when the rate adjusts, and borrowers should carefully consider the potential for future payment changes.
Who May Benefit from an ARM?
Key Features & Benefits
General Qualification Considerations
ARM qualification generally follows similar standards to fixed-rate mortgage qualification, including credit score, income, debt-to-income ratio and assets. Lenders may qualify borrowers at a higher rate than the initial rate to account for potential future adjustments.
All ARM loans are subject to lender underwriting guidelines and credit approval. Borrowers should carefully review the loan terms, including the index, margin, rate caps and adjustment schedule, before committing to an adjustable-rate mortgage.
ARM Loans in Tampa & Florida
Adjustable-rate mortgages can be a consideration for borrowers throughout Tampa Bay and across Florida who are evaluating their financing options. The right mortgage structure depends on your individual situation, goals and risk tolerance.
Mortgage Approval Group works with wholesale lenders to help borrowers throughout Florida compare ARM and fixed-rate mortgage options. Our mortgage professionals can help you understand the differences and evaluate which structure may be appropriate for your situation.
Why Work With Mortgage Approval Group?
Mortgage Approval Group is an independent mortgage broker headquartered in Tampa, Florida, serving homebuyers, homeowners and real estate investors throughout the state. As a broker, we work with a network of wholesale lenders — which means we can compare loan programs and pricing across multiple sources rather than being limited to a single lender's offerings.
Our mortgage professionals take time to understand your goals, review your financial situation and help identify financing options that may fit your circumstances. Whether you're purchasing your first home, refinancing an existing mortgage or exploring a specialized loan program, we're here to guide you through the process.
Mortgage Approval Group, LLC is located at 2918 Busch Lake Blvd, Suite A, Tampa, FL 33614. We serve borrowers throughout Florida.
Frequently Asked Questions
Related Loan Programs
Ready to Explore Your Options?
Contact Mortgage Approval Group to discuss your goals and learn about the mortgage programs that may be available for your situation.