Take advantage of today’s lower starting rates while maintaining flexibility with an Adjustable Rate Mortgage. At Real Estate Investor Lending, we help homebuyers and homeowners in San Diego, El Segundo, and across multiple states find the right financing solution for their specific timeline and financial goals. Our expert team provides clear guidance so you can confidently choose between fixed and adjustable-rate options.
An Adjustable Rate Mortgage (ARM) is a home loan where the interest rate remains fixed for an initial period, then adjusts periodically based on market indexes. Common ARM products include the 5/6 ARM, 7/6 ARM, and 10/6 ARM - where the first number represents the initial fixed-rate period in years, and the second indicates how often the rate adjusts afterward (typically every 6 months).
Unlike fixed-rate mortgages, the rate on an ARM can go up or down after the introductory period. This usually results in a significantly lower initial interest rate compared to a 30-year fixed mortgage.
"An ARM is an Adjustable Rate Mortgage. Unlike fixed rate mortgages that have an interest rate that remains the same for the life of the loan, the interest rate on an ARM will change periodically. The initial interest rate of an ARM is lower than that of a fixed rate mortgage, consequently, an ARM may be a good option to consider if you plan to own your home for only a few years; you expect an increase in future earnings; or, the prevailing interest rate for a fixed mortgage is too high."
Often 0.5%-1%+ lower than fixed rates, improving affordability in the early years.
Qualify for a larger loan amount with the same monthly budget.
Perfect if you plan to sell or refinance within the initial fixed period (5, 7, or 10 years).
Fixed rate and payment for the full 15 years - no surprises.
Most ARMs include lifetime and periodic rate caps to limit how much your rate can increase.
Excellent for buyers expecting income growth or those who may move for career opportunities.
At Real Estate Investor Lending, we only recommend ARMs when they truly align with your plans and risk tolerance.
Monthly payments can increase after the initial fixed period.
If interest rates climb, your rate and payment could rise significantly.
Requires understanding of indexes, margins, caps, and adjustment schedules.
Many borrowers refinance into a fixed-rate loan before the adjustment period begins.
Lenders now qualify you at a higher "fully indexed" rate for safety.
This loan works best for:
✓ Homebuyers planning to stay 3-10 years
✓ Professionals expecting significant income growth
✓ Buyers in high-cost markets like San Diego who want maximum buying power
✓ Those who plan to refinance before the fixed period ends
✓ Savvy borrowers comfortable with some market risk for potential savings
✓ Investors or second-home purchasers with shorter holding periods
We review your finances and run multiple ARM scenarios.
Decide on 5/6, 7/6, 10/6 or other ARM structures.
Lock the initial low rate during your purchase or refinance.
After the fixed years, the rate adjusts based on market index + margin, subject to caps.
We stay in touch and help you evaluate refinance options before adjustments.
Most modern ARMs include strong consumer protections such as initial and lifetime rate caps.
Loan Type | Initial Rate | Rate Stability | Monthly Payment (Early) | Best For | Risk Level |
|---|---|---|---|---|---|
5/6 ARM | Lowest | Fixed 5 yrs, then adjusts | Lowest | Short-term (3-7 years) | Higher |
7/6 ARM | Very Low | Fixed 7 yrs, then adjusts | Low | Medium-term (5-10 years) | Medium |
30-Year Fixed | Higher | Fixed entire term | Higher | Long-term stability | Lowest |
15-Year Fixed | Low | Fixed entire term | Highest | Fast payoff | Lowest |
As a nationally licensed mortgage broker (NMLS #2130517) with offices in San Diego and El Segundo, California, we have access to a wide array of competitive ARM programs from multiple wholesale lenders. Our mission remains simple: deliver financing options that enhance your standard of living while treating every client like family.
We provide clear explanations, transparent comparisons, and ongoing support so you never feel uncertain about your adjustable-rate mortgage.
Ready to explore lower starting rates with an ARM? Get pre-approved today - no obligation.
The rate is fixed for the first 5 years, then adjusts every 6 months afterward.
Yes - if market rates fall, your payment can go down after the initial period (subject to caps).
Most ARMs have lifetime caps (e.g., 5% or 6% above the initial rate) to protect you.
It depends on your timeline. We'll analyze current rates and your plans to give honest advice.
Yes - many conventional, FHA, and VA ARM options allow low down payments.
Yes - we are licensed in many states and can assist borrowers nationwide where permitted.
Real Estate Investor Lending · NMLS #2130517 · Licensed Mortgage Broker
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This is not a commitment to lend. All loans subject to credit approval. Equal Housing Lender.