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Home Financing With Houzd Mortgage

Adjustable-Rate Mortgages
in Utah

Compare ARM and fixed-rate financing for your Utah home purchase or refinance. Our Houzd Mortgage team will help you understand the initial rate, future adjustments, and how each option fits your budget.

Start Your Application Explore Home Financing
The Basics

What is an adjustable-rate mortgage?

An adjustable-rate mortgage, or ARM, is a home loan with an interest rate that can change on a scheduled basis. Common hybrid ARMs begin with a fixed rate for several years before adjustments start.

After the initial fixed period, your rate follows the index, margin, and adjustment limits in your loan agreement. Your monthly payment may increase.

Understand the starting payment and what comes next.

An ARM may offer a lower initial rate than comparable fixed-rate financing. We'll compare the potential savings, costs, and future payment scenarios together.

Why Consider an ARM?

Compare the possibilities and the tradeoffs.

A mortgage should fit your finances today and account for what could change.

01

Potential Initial Savings

A lower starting rate may reduce your initial principal and interest payment. Pricing and savings vary.

02

An Initial Fixed Period

Hybrid ARMs keep the interest rate fixed for a specified period before adjustments begin.

03

Different Timelines

Compare the initial fixed period with how long you expect to keep the loan. Consider what happens if your plans change.

04

Defined Adjustment Rules

Your loan documents specify the index, margin, adjustment dates, and applicable caps.

05

Rates Can Move Both Ways

After the fixed period, the rate may rise or fall according to the loan's terms, including caps and floors.

06

A Personalized Comparison

Review an ARM alongside fixed-rate financing using your loan amount, budget, and goals.

Understanding ARM Terms

What do 5/6, 7/6, and 10/6 mean?

In these examples, the first number is the initial fixed-rate period in years. The second number means the rate can adjust every six months afterward.

These labels describe the rate schedule, not the total repayment term. Availability and exact terms depend on the program.

7/6

Seven Years Fixed

The rate is fixed for seven years, then can adjust every six months.

5/6

Five Years Fixed

The rate is fixed for five years, then can adjust every six months.

10/6

Ten Years Fixed

The rate is fixed for ten years, then can adjust every six months.

Compare

Check Your Exact Schedule

Other ARM structures may adjust annually or on a different schedule. Review your loan disclosures.

After the Fixed Period

How does an ARM interest rate adjust?

The adjusted rate generally equals a market index plus the lender's margin, subject to caps, floors, rounding rules, and other loan terms.

The index moves with market conditions. The margin is established in your loan agreement and generally stays the same.

What do rate caps protect against?

Caps limit specified interest rate changes at the first adjustment, at later adjustments, and over the loan's life. Payments can still rise significantly. We'll review the maximum potential rate and payment.

Local Mortgage Guidance

Compare ARM Loans With a Utah Mortgage Team

Based in Draper, our Houzd Mortgage team helps borrowers across Utah, including Salt Lake, Utah, Davis, and Weber counties.

Whether you're buying in Salt Lake City, moving within the Wasatch Front, or refinancing your current home, we'll compare financing around your situation.

We'll look at your expected time in the home, initial payment differences, closing costs, and the possibility of staying beyond the fixed-rate period.

Meet our Houzd Mortgage loan officers
Is an ARM Right for You?

Start with your plans and your budget.

Before choosing an adjustable-rate mortgage, let's discuss:

How long you expect to keep the home and loan.
The initial payment difference after accounting for fees.
Your ability to handle a higher payment.
The index, margin, adjustment schedule, and caps.
Your plan if selling or refinancing is delayed.
Whether a fixed rate better fits your comfort level.
The Process

Clear answers before you choose.

Our Houzd Mortgage team will help you work through the comparison.

01

Share Your Goals

Tell us about your finances, homebuying plans, or refinance goals.

02

Compare Financing

Review available ARM and fixed-rate options, payments, and costs.

03

Plan for Adjustments

Assess future payment scenarios and what your budget can handle.

04

Finalize Your Loan

Complete approval and review the final terms before closing.

Questions

Utah Adjustable-Rate Mortgage FAQ

Can I get an adjustable-rate mortgage in Utah?
Yes. ARM programs may be available to qualified Utah borrowers. Options depend on your credit, income, down payment or equity, loan amount, property, and lender requirements.
Is an ARM or a fixed-rate mortgage better for me?
It depends on your budget, timeline, available pricing, and tolerance for future payment changes. A fixed-rate loan keeps its interest rate for the loan term. An ARM can change after its initial fixed period.
Is a seven-year ARM paid off in seven years?
No. Seven years describes the initial fixed-rate period, not the repayment term. A 7/6 ARM can adjust every six months after that period. Your full loan term is stated separately.
What is the difference between a 7/1 and a 7/6 ARM?
Both typically have a seven-year initial fixed period. A 7/1 ARM adjusts annually afterward, while a 7/6 ARM adjusts every six months. Confirm the schedule in your loan agreement.
Can my payment change during the fixed period?
On a fully amortizing hybrid ARM without a temporary buydown, scheduled principal and interest generally stay fixed during the initial period. Taxes, insurance, and other charges can still change your total payment.
How much can my ARM rate increase?
Your loan's initial, periodic, and lifetime caps determine permitted increases. Cap structures vary. We'll explain your specific limits and potential payment changes before you commit.
What if I stay in my home longer than expected?
The loan continues under its adjustment rules. Your rate and payment may change. Choose an ARM only after reviewing how those changes could affect your budget.
Can I refinance before the rate adjusts?
You may be able to, but refinancing requires a new approval and involves costs. Future rates, home value, and qualification are not guaranteed. Your plan should account for keeping the existing loan.
Will my rate decrease if market rates fall?
Not automatically during the fixed period. Afterward, adjustments use the designated index and margin on scheduled dates, subject to the loan's caps, floors, and other terms.
How do I compare current ARM rates in Utah?
Request quotes using the same loan amount, property, down payment, and credit profile. Compare points, fees, fixed periods, adjustment terms, and future payments alongside the initial rate. Talk to our team about available options.

Your Utah Home.
Your Mortgage Strategy.

Let's compare adjustable-rate and fixed-rate financing around your budget and next move.

Start Your Application Explore Home Financing

Have questions first? Talk to a Houzd Mortgage loan officer.

Houzd Mortgage | Draper, Utah | NMLS #888979 | Equal Housing Opportunity.

All loans are subject to credit, income, asset, property, and underwriting approval. Program availability, rates, fees, and terms vary. ARM structures described are examples and do not guarantee program availability.

Adjustable-rate mortgage rates and payments may increase after the initial fixed period. Review the index, margin, caps, floors, adjustment schedule, and maximum potential payment in your loan disclosures. Future refinancing is not guaranteed.