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
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
5.0 /5 | 620 | 3% | Learn moreat Better at Better | |
5.0 /5 | 620 | 3% | Learn moreat Guaranteed Rate at Guaranteed Rate | |
5.0 /5 | 620 | 3% | Learn moreat NBKC at NBKC | |
5.0 /5 | 620 | 3% | ||
5.0 /5 | 620 | 5% |
- Offers a program allowing qualifying buyers to make cash offers.
- Makes it easy to see customized mortgage rates.
- Average interest rates are on the low end compared to other lenders, according to the latest federal data.
- Doesn’t offer USDA loans.
- VA loans are not available in every state.
- Doesn't offer home equity loans.
- Displays detailed sample rates for many of its loan products.
- Offers a wide variety of loans, including jumbo and interest-only products.
- Offers low rates compared with other lenders, according to the latest federal data.
- Doesn't offer home equity loans.
- 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.
- Posts current mortgage rates on its website.
- Offers several affordable loan options, including FHA, VA, USDA and the PNC Community Loan.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Doesn't offer renovation mortgages.
- In-person service is not available in every state.
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.
- No FHA, VA or USDA mortgages.
- Loans are available only in California.
- 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.
- Offers a program to enable buyers to make cash offers.
- Mortgage origination fees tend to be on the high end, according to the latest federal data.
- Offers a wide range of loan types and products, including FHA, VA and USDA.
- Borrowers can apply and track loan status online.
- Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable.
- Home equity loans are geographically limited.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Low- or no-down-payment options with no mortgage insurance.
- Offers a home equity line of credit, or HELOC.
- Mortgages are available for non-warrantable condominiums.
- Doesn't offer government-backed mortgages, like FHA or VA loans.
- Mortgage origination fees are on the high side, according to the latest federal data.
- Offers a variety of purchase and refinance loans, including jumbo mortgages.
- Has a preferred real estate agent program that can save a borrower money on closing costs.
- Offers some flexibility on guidelines for loan qualification.
- Does not offer VA or USDA loans.
- Products available only to California residents.
- Offers a wide range of affordable mortgage products, including 0% down payment loans, designed for military members.
- Offers HELOCs and home equity loans.
- Offers low rates compared with most lenders, according to the latest federal data.
- Website does not provide customized mortgage rates based on credit score or other factors before you apply.
- Credit union membership is limited to veterans and current military members, their families, and certain federal employees, retirees and contractors.
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
- Better: Best for digital convenience
- Guaranteed Rate: Best for overall lending experience
- NBKC: Best for overall lending experience
- PNC: Best for first-time home buyers
- San Diego County Credit Union: Best for digital convenience
- New American Funding: Best for borrowers with nontraditional credit histories
- Flagstar: Best for first-time home buyers
- Alliant: Best for jumbo loans
- Golden 1 Credit Union: Best for credit union lending
- Navy Federal: Best for credit union lending
