11 Best Adjustable-Rate Mortgage Lenders of 2025
Last updated on May 9, 2025
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An adjustable-rate mortgage, or ARM, is a home loan with an interest rate that can change over time. In most cases, ARM lenders provide a comparatively low fixed interest rate during an introductory period, which could be as few as three years or as many as 10.
When the introductory period expires, the interest rate adjusts to current market rates. If current rates are lower, your rate and mortgage payment may decrease. But if current rates are higher than the initial rate, your rate and mortgage payment may increase. ARM rates continue to change periodically — commonly, every six months or one year — until you sell, refinance or pay back the mortgage in full.
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Why trust NerdWallet
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
11 Best Adjustable-Rate Mortgage Lenders of 2025
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Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
620 | 3% | |||
620 | 3% | |||
N/A | 5% | |||
620 | 3% | |||
N/A | 5% | |||
620 | 3% |
Better: Best for digital experience
Min. credit score
620
Min. down payment
3%
- Why we like itOnline-only lender Better offers a range of mortgage types and a one-stop shopping experience, though some borrowers may be turned off by the lender’s lack of chat support or a mobile app.Pros
- Borrowers can apply, lock in a rate and receive a commitment letter within one day.
- Offers both HELOCs and home equity loans with a high borrowing limit of 90% CLTV.
- Offers mortgages for manufactured homes, as well as financing for self-employed borrowers.
ConsRead full review- No mobile app; customer service is by email or phone only.
- Borrower must provide contact information to see customized rates.
- Does not offer renovation or construction loans.
Rate: Best for fast preapproval
Min. credit score
620
Min. down payment
3%
- Why we like itRate boasts a streamlined application process, with full underwriting in as little as one business day — though for all its online conveniences, you'll still work with a human.Pros
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a fixed-rate HELOC that can be funded in as few as five business days.
ConsRead full review- Some affordable loan options have income limits or other restrictions.
- Details of less common loan types aren't available on the lender's website.
- HELOC requires immediate, full withdrawal of funds, though there is an option to make additional draws.
Flagstar: Best for traditional lending experience
Min. credit score
N/A
Min. down payment
5%
- Why we like itFlagstar Bank stands out for its range of accessible loans and programs, including loans with flexible requirements and down payment grant options. Its mortgage operations were acquired by Mr. Cooper in 2024.Pros
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
ConsRead full review- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
PNC Bank: Best for first-time homebuyers
Min. credit score
620
Min. down payment
3%
- Why we like itPNC Bank has a variety of appealing mortgage options, including jumbo loans, programs for first-time home buyers and home equity lines of credit.Pros
- Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
- Jumbo loans available with minimum down payments of 5%.
- Customizable mortgage rates are posted online.
ConsRead full review- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
Navy Federal: Best for active military and veterans
Min. down payment
5%
National / regional
National
- Why we like itNavy Federal is known for VA lending, but its flexible VA-like loan options truly stand out. You'll need a military connection to join the credit union.Pros
- Offers unique no-down-payment and no-mortgage-insurance loan options for military and civilian members.
- 24/7 customer service supports borrowers stationed overseas.
- Has both home equity loans and lines of credit.
ConsRead full review- Borrowers must join the credit union before applying for a mortgage, and all borrowers on the loan must be members for the loan to close.
- Does not offer FHA, renovation or construction loans.
Pennymac: Best for low average mortgage rates
Min. credit score
620
Min. down payment
3%
- Why we like itPennymac, known for its government loans, stands out for a transparent digital experience. Interest rates tend to be low, but origination fees may be a bit high.Pros
- Easy to personalize a quote and apply online.
- Can lock in a rate before you’re under contract, earlier than most lenders.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
ConsRead full review- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
- No home equity lines of credit or renovation loans.
U.S. Bank: Best for overall mortgage experience
Min. credit score
N/A
Min. down payment
N/A
- Why we like itU.S. Bank stands out for online convenience and impressive mortgage options, from government-backed loans to boutique mortgages. Home improvement loans and borrower assistance are available.Pros
- Offers up to $17,500 in down payment and closing cost assistance.
- Wide variety of mortgage types.
- Experienced with construction-to-permanent and renovation loans.
ConsRead full review- Assistance programs limited to select cities and states.
- Online rate tool doesn’t customize by credit score.
State Employees' Credit Union: Best for North Carolina borrowers
Min. credit score
N/A
Min. down payment
0%
- Why we like itState Employees’ Credit Union in North Carolina is worth checking out for those in the Southeast who meet its narrow membership criteria — especially first-time home buyers eligible for generous grants and specialty loans. But it doesn’t offer government-backed mortgages.Pros
- Offers a zero-down mortgage without private mortgage insurance.
- Participates in multiple first-time buyer assistance programs.
- Low average mortgage rates, according to the latest federal data.
ConsRead full review- Credit union membership eligibility is limited.
- Loans only available in five states.
- Doesn’t offer government-backed mortgages.
First Federal Bank: Best for low average mortgage rates
Min. credit score
620
Min. down payment
3%
- Why we like itFirst Federal Bank stands out for its exceptionally low interest rates and its emphasis on government loans. Most likely to appeal to borrowers shopping for low rates and fees.Pros
- Strong experience in FHA and VA lending.
- Average mortgage rates are on the low side, according to the latest federal data.
- Minimum credit score requirement of 580 for some loans, which is lower than some competitors.
ConsRead full review- No mobile app.
- Home equity lending is not a priority.
- Does not offer renovation loans, but does offer construction loans.
Network Capital: Best for fast closings
Min. credit score
620
Min. down payment
3%
- Why we like itNetwork Capital stands out for its focus on refinancing, especially cash-out transactions — only 6% of Network Capital customers got a purchase mortgage last year. Most likely to appeal to borrowers looking to refinance their home loan.Pros
- Cash-out refinancing is an uncommon specialty, so Network Capital could appeal to that borrower.
- Offers HELOCs for homeowners who want to access their equity without refinancing.
ConsRead full review- Home buyers should know the lender doesn’t specialize in purchase loans.
- Borrowers must be contacted for a quote before completing an online application.
SoFi: Best for rate transparency
Min. credit score
620
Min. down payment
3%
- Why we like itSoFi offers perks for existing customers, including a discount on closing costs and accessible customer support. The site primarily highlights conventional home loan offerings, so borrowers looking for other loan types may need to reach out directly for more details.Pros
- Interest rates are on the lower side, according to the latest federal data.
- Conventional loan borrowers can choose between a 10-, 15-, 20- or 30-year term.
- HELOC borrowers may access up to 90% of their home equity.
ConsRead full review- Sample mortgage interest rates are shown for conventional purchase and refinance loans, but not for other loan types.
- For customized mortgage rates, you have to provide your contact information.
- - Online details on some loan products are scant.
When is an adjustable-rate mortgage a good idea?
Here are some situations in which an ARM makes sense:
- You’ll own the house for a short time. If you might relocate within three, five, seven or 10 years, an ARM may save you money. Military members and their families or doctors in a residency program are two examples of borrowers who may anticipate a move.
- You plan to pay off the mortgage quickly. Do you expect a financial windfall, such as an inheritance or lawsuit settlement, in the next few years? An ARM may allow you to make smaller monthly mortgage payments until the money comes in and you pay off the loan.
- You expect fixed-rate mortgage rates to decrease. It’s risky and hard to predict, but if you expect fixed-rate mortgage rates to drop below current ARM rates before your introductory period expires, an adjustable-rate mortgage may yield savings until fixed rates drop. Be aware that this option requires you to eventually refinance to a fixed-rate mortgage, which means choosing a lender, getting approved and paying closing costs, just like with your ARM.
When is an adjustable-rate mortgage a bad idea?
An ARM probably isn’t the right choice if:
- You plan to put down roots. If you’re buying your forever home and have no plans to move, a fixed-rate mortgage might be more appropriate. While it may have a slightly higher rate, a fixed-rate mortgage involves less risk than an adjustable-rate mortgage, so your investment is better protected.
- You want a predictable mortgage payment. Sure, the interest rate on a fixed-rate mortgage may initially be higher than that of an ARM, but you’ll never have to worry about it going up, and you’re always free to refinance your mortgage if rates drop significantly in the years ahead.
- Your budget can’t handle a larger mortgage payment. Maybe you’re thinking about going back to school, starting a family or launching a business. These life changes could affect your income in the years ahead. If you’re not 100% sure you could handle a mortgage payment that gets bigger when rates adjust higher, stick with the predictability of a fixed-rate mortgage.
More from NerdWallet
Last updated on May 9, 2025
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must confirm the availability of adjustable-rate loans in NerdWallet’s annual mortgage lender survey. The highest scoring lenders according to our home loans overall methodology are featured here.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2023 Home Mortgage Disclosure Act data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Adjustable-Rate Mortgage Lenders of 2025
- Better: Best for digital experience
- Rate: Best for fast preapproval
- Flagstar: Best for traditional lending experience
- PNC Bank: Best for first-time homebuyers
- Navy Federal: Best for active military and veterans
- Pennymac: Best for low average mortgage rates
- U.S. Bank: Best for overall mortgage experience
- State Employees' Credit Union: Best for North Carolina borrowers
- First Federal Bank: Best for low average mortgage rates
- Network Capital: Best for fast closings
- SoFi: Best for rate transparency
