If you’re shopping for a home or thinking about refinancing in 2025, chances are you’ve felt the pinch of today’s interest rates. One of the smartest ways to lower your monthly mortgage payment—without locking into a high 30-year rate—is by considering an adjustable-rate mortgage (ARM).
At Tabor Mortgage Group, we’ve just launched two new options: the 5/6 ARM and the 7/6 ARM. These mortgage products offer a lower initial rate and could be a great fit if you’re not planning to stay in your home long term.
💡 What Is an Adjustable-Rate Mortgage (ARM)?
An ARM starts with a fixed interest rate for a set number of years—after that, the rate adjusts every six months based on market conditions. Here’s how it breaks down:
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5/6 ARM: Fixed rate for 5 years, then adjusts every 6 months
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7/6 ARM: Fixed rate for 7 years, then adjusts every 6 months
The key advantage? A lower starting interest rate—which means lower monthly payments right now.
🔢 Why More Borrowers Are Choosing ARMs in 2025
Let’s say you’re purchasing a $350,000 home with 20% down and a 700+ credit score. With our new ARM programs:
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5/6 ARM APR: 6.17%
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7/6 ARM APR: 6.218%
That’s significantly lower than today’s 30-year fixed rates—and the savings can add up quickly.
👀 Is an ARM Right for You?
These flexible mortgage options are ideal for:
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Buyers who plan to move or sell within 5–7 years
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Homeowners looking to refinance to a lower rate
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Borrowers who expect to refinance again when rates drop
If you’re wondering whether an ARM vs fixed-rate mortgage makes more sense for your financial goals, we can help you run the numbers.
📲 Let’s find your best mortgage strategy.
Whether you’re buying or refinancing, now’s a great time to explore all your options and potentially lower your payment.