Adjustable-Rate Mortgages (ARMs)*

Low initial rates and flexible terms.

Featured Rate: 10/1 ARM

As low as

6.750%RATE [1]

As low as

6.876%APR [2]
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What is an Adjustable-Rate Mortgage (ARM)?

An Adjustable-Rate Mortgage (ARM) from Bethpage is a mortgage that starts with a low fixed interest rate for 5, 7, or 10 years, depending on the type selected. After the initial fixed period ends, the interest rate will adjust at preset intervals, based on market conditions. Adjustable-rate loans are often described by their initial rate period and interval of adjustment.

The first number (7 years) refers to the number of years the initial rate will stay fixed.
The second number (1 year) refers to how frequently (in years) the interest rate will adjust after the fixed rate period ends.

Adjustments to the interest rate on an ARM are based specifically on an index rate plus a margin set out in the terms of the loan. An index is a variable interest rate set by market forces and published by a neutral party. A margin is a fixed percentage rate that is added to the index to set the full interest rate at each adjustment. For example, if the index rate at the time of adjustment is 3% and the predetermined margin is 2%, the interest rate on the loan for that period will be 5%. At the next adjustment, if the index rate has risen to 3.5%, the margin will still be 2%, and the interest rate on the loan for the new period will be 5.5%. ARM interest rates can rise or fall.

There are several indexes used by lenders to adjust ARM rates. Each has its own characteristics that set it apart from the others. The index tied to an adjustable-rate mortgage can impact the interest rate and monthly payment over the life of the mortgage.

Reasons to choose an Adjustable-Rate Mortgage:

There are several reasons why an adjustable-rate mortgage loan may be the right choice.


lower monthly payment now

You want a lower monthly payment now.

An ARM typically has a lower interest rate (than that of a Fixed-Rate Mortgage) for the first years of the loan.

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You anticipate growth in your income over time.

An increase in your income can help you afford higher monthly mortgage payments should your rate rise after the fixed-rate period ends.

plan to move or refinance within a few years

You plan to move or refinance within a few years.

With an ARM, you can keep your long-term options open while you save money on interest early on.

Adjustable-Rate Mortgage vs. Fixed-Rate Mortgage

Adjustable-Rate Mortgage Fixed-Rate Mortgage
The structure of the interest Fixed for an initial term then adjusts periodically Fixed for the life of the loan
Lower initial interest rate ✓
Monthly principal and interest payments never change ✓
No pre-payment penalties ✓ ✓

Why Borrow with Bethpage?

At Bethpage, we are member-centric. Our main objectives are to provide you with the best value and an exceptional member experience from application to closing, whether you're taking out your first home loan, refinancing, or becoming a mortgage veteran.

Your Bethpage adjustable-rate mortgage will come with:

  • Free rate lock [3]
    There is no charge to lock in your initial rate for 60 days.
  • Quick, free pre-qualification
    The process is quick, easy, and free. Shop with confidence.
  • No pre-payment penalties
    Make additional payments toward the principal at any time with no penalty.
  • Low closing costs
    You can put the extra money in your pocket toward a bigger down payment, renovations, or treating yourself.
  • Dedicated loan consultant throughout process
    We're here to answer all your questions and smooth your way through the entire process.

Be sure to review our competitive rates and learn how you could become pre-qualified for an adjustable-rate mortgage with Bethpage. For those of loan shoppers that are ready to apply, submit a quick application form and a member of our team will reach out to you to discuss your mortgage options.

Adjustable-Rate Mortgage (ARM) FAQs

How do I know which type of mortgage is best for me?

Many factors determine the type of mortgage that is best for you, including your current financial situation and the length of time you intend to stay in your home. At Bethpage, we offer a wide selection of mortgage options, and we encourage you to speak with a Bethpage Mortgage Loan Officer.

What is the Initial Rate Period?

The initial rate period is the length of time — the first 5, 7, or 10 years of the loan — during which the initial rate will remain fixed.

What is the Adjustment Period?

The adjustment period is the length of time that your new interest rate will remain in effect, once the initial period is over.

When the interest rate on an ARM adjusts, are there caps on how high it can go?

With a Bethpage ARM, there is a maximum for each adjustment and for how much your interest rate can increase over the life of the loan. For example, for our 5/1 ARM, the interest rate for each adjustment cannot increase or decrease more than 2 percent after the fixed rate period. And, the interest rate will never increase or decrease more than 6 percent for the life of the loan. Caps may vary by programs available.

Can I pay an Adjustable-Rate Mortgage off early without penalty?

Yes, you can pay off your Bethpage Adjustable-Rate Mortgage any time without any pre-payment penalties.

How can I apply for Adjustable-Rate Mortgage?

To start your application online, click here. Or, you can visit your local branch or call 1-855-455-8540 to be connected with a Bethpage Mortgage Loan Officer.

All loan terms are subject to credit and loan program requirements (applicants may be offered credit at higher rates and other terms). Certain loan programs may not be available to all applicants. Loans above 80% Loan to Value (LTV) may require private mortgage insurance (PMI). Please contact your Mortgage Loan Officer to determine whether PMI is required. Bethpage does not offer residential mortgage loans in Texas. To obtain a loan, membership at Bethpage is required by opening a $5.00 minimum share savings account at or prior to consummation of the loan. Rates, loan programs, terms, and conditions are subject to change without notice. Other restrictions and limitations apply.

* ARM loans are variable rate loans, where interest rates and payments may increase after consummation. A 5/1 ARM has an initial fixed interest rate for the first 5 years (5 years for a 5/1 ARM, 7 years for a 7/1 ARM, and 10 years for a 10/1 ARM), then adjusts every year thereafter based on an index, plus a margin. After the initial fixed-rate period, your interest rate can increase or decrease annually according to the market index. Any change may significantly impact your monthly payment.

[1] Rates and terms are subject to change without notice. All offers of credit are subject to credit approval; not all applicants will qualify for the lowest rate and may be offered credit at higher rates and other terms based on creditworthiness.

Interest Rate and APR Assumptions. The Interest Rate, and APR assumes the mortgage is a conforming loan to purchase an existing single-family home used as the borrower's primary residence in New York, a Loan to Value (LTV) ratio of 75% or less, the borrower has excellent credit (720 or greater), a rate lock of 60 days or less, a loan amount of $165,000, and a 30-year loan term. The Estimated Monthly Payment reflects the principal and interest payment only, which does not include amounts for taxes, nor insurance (actual payments will be greater).

[2] APR = Annual Percentage Rate. The APR is the cost of credit over the term of the loan expressed as an annual rate.

[3] Free rate lock begins when your rate is locked. A complete application is required in order to request a rate lock.