Variable or adjustable rate loans are loans whose interest rate and resulting monthly payments fluctuate over the period of the loan. They offer a convenient way to lower monthly payments. Clients typically interested in ARMs are looking to have a lower interest rate for a short period of time because they know that their financial circumstances will improve with time, allowing them more home now without the burden of a higher fixed-rate loan; or because they wish to pay ahead on the principal to accelerate the reduction of the balance; or because they plan to own the property only for a short period of time.

Most ARMs have interest rate caps to protect you from enormous increases in monthly payments. A lifetime cap limits the interest rate increase over the life of the loan. A periodic or adjustment cap limits how much your interest rate can rise at one time.

Middlestead Mortgage offers several options at wholesale rates, including 1-, 3-, 5-, 7- and 10-year ARMs, as well as Flex Saver ARMs and Pay Option ARMs.