10 Best Adjustable-Rate Mortgage Lenders of 2023
These are among the best adjustable-rate mortgage lenders in 2023 for various borrowing circumstances, as determined by NerdWallet research.
Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
Now that you've decided to shop for an adjustable-rate mortgage, it's time to decide which lenders to consider. NerdWallet has reviewed leading lenders that offer adjustable-rate mortgages and classified them based on individual loan needs. These ARM lenders are among the best available. Just choose your situation and click through for more information.
Best Adjustable-Rate Mortgage Lenders
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620 | 3% | |||
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn moreat New American Fundingat New American Funding | 580 | 3% | Top 3 most visited 🏆 Learn moreat New American Fundingat New American Funding | |
620 | 3% | Top 3 most visited 🏆 Learn moreat Guaranteed Rateat Guaranteed Rate | ||
N/A | 3% | |||
N/A | 0% |
- Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
- Offers low rates and fees compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
New American Funding: NMLS#6606
580
3%
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Has a program to enable buyers to make cash offers.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage origination fees tend to be on the high end.
- Personalized mortgage rates are not available on the website without providing contact information.
Guaranteed Rate: NMLS#2611
620
3%
- Offers a one-day mortgage approval process.
- Offers a generous selection of loans, including government-backed, interest-only, ITIN, jumbo, and renovation loans.
- Advertises a HELOC that can be funded in as few as five business days.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Origination fees are higher than average, according to the latest federal data.
- HELOC has a relatively short draw period, which may not provide flexibility for someone who wants the option of accessing home equity over a longer period.
- Borrowers can apply entirely online. The lender is also very transparent about what borrowers can expect from the process, including nontraditional customers.
- Borrowers do not need to become members of the credit union until they’ve reached the closing process, meaning that interested home buyers can apply and get rate offers without committing to membership.
- Offers customized rate quotes, including a detailed breakdown of estimated closing costs.
- Does not offer VA, FHA or USDA loans.
- Membership is contingent on belonging to or joining a partner organization, or living in an eligible Chicago-area community.
Navy Federal: NMLS#399807
National
0%
- Offers unique loan options aimed at military borrowers, such as a proprietary loan called Military Choice that works as an alternative to VA loans.
- 24/7 customer service supports borrowers stationed overseas.
- Offers home equity loans and lines of credit.
- Borrowers must join the credit union before applying for a mortgage.
- The lender does not offer renovation or construction loans.
- When we tried their customer service line, we sometimes waited longer than 10 minutes before being connected with a representative who could answer our questions.
- Offers a one-day mortgage that lets eligible borrowers apply, lock in a rate and get a loan commitment within 24 hours.
- Average interest rates are on the low end compared to other lenders, according to the latest federal data.
- Offers a HELOC that can be used for a primary, second or investment home.
- Doesn't offer harder-to-find loans, such as construction loans, renovation loans, or USDA mortgages.
- Finding descriptions of all of the loan offerings on the website requires some digging, and the lender does not have a mobile app.
- Average lender fees are on the high end compared with other lenders, according to the latest federal data.
- Offers several low-down-payment loan options, including FHA, VA, USDA and the PNC Community Loan.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage rates are lower than the industry average, according to the latest federal data.
- Jumbo loans available with 5% down payment.
- Doesn't offer renovation mortgages or home equity loans.
- In-person service is not available in every state.
- You’ll have to create an account or supply personal data to get answers by phone.
San Diego County Credit Union: NMLS#580585
5%
Regional
- Offers purchase, refinance and jumbo mortgages, plus loans for second homes and home equity products.
- Provides customized rate and fee quotes without requiring contact information.
- Interest rates are notably low, according to the latest federal data.
- No FHA, VA or USDA mortgages.
- Loans are available in California only.
- Mobile app has low ratings.
- Multiple loans for those who are renovating or building a home, including loans with interest-only payments during construction.
- Offers home equity loans and lines of credit.
- Offers down payment assistance and loans for underserved borrowers, including ITIN loans and loans with flexible qualifications in certain communities.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Borrowers can enter their information (including their desired loan amount, down payment and zip code) into the lender’s Mortgage Quote Comparison tool and receive a customized rate quote.
- Home equity loans are not available in all locations served by Flagstar.
- In 2022, the lender was fined for violating laws regarding properties in flood zones.
Golden 1 Credit Union: NMLS#669333
N/A
3%
- Has a preferred real estate agent program that can save a borrower money on closing costs.
- Offers some flexibility on guidelines for loan qualification.
- Customized sample rates are available online without contacting the lender.
- Does not offer VA or USDA loans.
- Products mostly available only to California residents.
- Doesn’t offer home equity loans, only HELOCs.
More from NerdWallet
What is an adjustable-rate mortgage?
An adjustable-rate mortgage, or ARM, is a home loan with an interest rate that can change over time. In most cases, an adjustable-rate mortgage will have a low fixed interest rate during the 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 — usually once a year — until you sell, refinance or pay back the mortgage in full.
When an adjustable-rate mortgage is a good idea
Here are some situations in which an ARM makes sense:
You’ll own the house for only a short period of time. If you might relocate in three, five, seven or 10 years, an ARM may save you money. Military families or doctors in a residency program are two examples where this might be the case.
You plan to pay off the total balance of 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 you can own the home free and clear.
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 an adjustable-rate mortgage is 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 away, a fixed-rate mortgage might be the more appropriate choice. 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.
Last updated on February 15, 2023
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 50 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 offer adjustable-rate loans. The highest scoring lenders according to our 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 2021 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 2023
- NBKC: Best for overall lending experience
- New American Funding: Best for borrowers with nontraditional credit histories
- Guaranteed Rate: Best for overall lending experience
- Alliant: Best for jumbo loans
- Navy Federal: Best for credit union lending
- Better: Best for digital convenience
- PNC: Best for first-time home buyers
- San Diego County Credit Union: Best for digital convenience
- Flagstar: Best for first-time home buyers
- Golden 1 Credit Union: Best for credit union lending
