Adjustable-Rate Mortgage

Lower your rate at the beginning of the loan.

An adjustable-rate mortgage (ARM) features an initial period with a fixed interest rate followed by an adjustable phase during which the rate can change. ARMs typically feature lower initial interest rates and lower monthly payments for the first few years of the loan, and then they adjust upward (or even down) based on market conditions and loan terms.

Evergreen Home Loans™ currently offers a 5/1 ARM (sometimes referred to as a fixed-period ARM), in which the interest rate is fixed for the first five years of the loan and then adjusts annually for the remainder of the loan term.

Refinancing to an adjustable-rate mortgage is less common than refinancing to a fixed-rate loan from an ARM. Still, there might be circumstances where refinancing to an ARM makes sense, such as if you’re planning to sell your home in a few short years.


  • An ARM offers a lower initial monthly payment compared to a fixed-rate loan.
  • It is a possible way to save money if you plan on living in your home for only a few years or plan to refinance after a few years.
  • You can manage higher interest rates and payments later as your income grows to meet those expenses.


  • You’re subject to interest rate changes that are out of your control.
  • It’s unpredictable. After the fixed-rate phase, you won’t know exactly what your payment will be from year to year.


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