Refinancing to an adjustable-rate mortgage (ARM) typically provides a lower interest rate for an initial payment period, making the initial monthly payments less than what a fixed-rate mortgage refinance usually offers.


Benefits

Plan to move before the end of the introductory fixed-rate period, so you aren't concerned about possible rate increases
Want an initial monthly payment lower than a fixed-rate mortgage usually offers
Think interest rates may go down in the future



7/1 ARM layer
Rate 3.375%
APR3. 849%
Points 0.667
Monthly Payment$884


Other ARM Layer Rates


Monthly payment layer
10/1 ARM layer
Rate3.500%
APR3.824%
Points0.540
Monthly Payment$898

About ARM rates
5/1 ARM layer
Rate3.000%
APR3.789%
Points0.706
Monthly Payment$843
About ARM rates