Lock in a lower rate Introductory rates lower than standard fixed-rate mortgages Lock in rate for 3, 5, 7, or 10 years Includes a cap on rate increases Good choice if moving or upsizing in a few years Adjustable-Rate Mortgages (ARMs) offer a low initial interest rate you can lock-in for 3, 5, 7 or 10 years. If you are planning to move in the near future, an ARM may be the ideal product for you. Rate adjustments are based on an index set by the weekly average yield on the U.S. Treasury. Higher interest rates in the future could result in a higher mortgage payment, but lower interests rates in the future could result in a lower mortgage payment. Whether the rate rises or falls, the annual adjustment is capped at 2% and the overall adjustment is capped at 5% over the life of the loan. This protects you from a large interest rate hike in the future.