11 Best Adjustable-Rate Mortgage Lenders of 2022 - NerdWallet Advertiser disclosure
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These are among the best adjustable-rate mortgage lenders in 2022 for a variety of borrowing circumstances, as determined by NerdWallet research.NerdWallet May 6, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. Now that you've made the decision 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 even more information. Now that you've made the decision 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 even more information. Best Adjustable-Rate Mortgage Lenders
LenderNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Min. credit score Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standardsMin. down paymentLearn more PNC NMLS#446303Learn more at PNC 5.0/5 Best for first-time home buyers620 VA:VariesUSDA:640JUMBO:680FHA:620CONVENTIONAL:6203%Minimum down payment varies by mortgage loan type.Learn more at PNC Bethpage Federal Credit Union NMLS#449104Learn more at Bethpage Federal Credit Union 4.5/5 Best for credit union lending620 VA:N/ACONVENTIONAL:620FHA:580JUMBO:6203%Bethpage FCU offers conventional loans with as little as 3% down.Learn more at Bethpage Federal Credit Union Alliant NMLS#197185Read review 4.5/5 Best for credit union lending N/A3% Alliant Credit Union offers conventional loans with as little as 3% down.Read review Bank of America NMLS#399802Read review 4.5/5 Best for first-time home buyers660 CONVENTIONAL:660FHA:600JUMBO:720VA:6205%Bank of America offers down payments as low as 3% through its Affordable Loan Solution mortgage program.Read review Citibank NMLS#412915Read review 4.5/5 Best for origination fees N/A3% Citibank offers down payments as low as 3% through its HomeRun loan program.Read review US Bank NMLS#402761Read review 4.5/5 Best for traditional lending experience620 VA:N/ACONVENTIONAL:620FHA:N/AJUMBO:N/AUSDA:N/A5%U.S. Bank offers conventional loans for as little as 5% down.Read review Golden 1 Credit Union NMLS#669333Read review 4.5/5 Best for credit union lending620 CONVENTIONAL:620FHA:N/AJUMBO:N/A3%Golden 1 offers conventional loans with as little as 3% down.Read review Wells Fargo NMLS#399801Read review 4.5/5 Best for digital convenience620 USDA:620VA:620JUMBO:N/AFHA:620CONVENTIONAL:6203%Wells Fargo accepts down payments as low as 3% on fixed-rate mortgages through its yourFirst Mortgage program.Read review Truist NMLS#399803Read review 4.5/5 Best for traditional lending experience620 USDA:N/ACONVENTIONAL:6203%Read reviewChase NMLS#399798Read review 4.5/5 Best for rate transparency620 CONVENTIONAL:620FHA:620JUMBO:N/AUSDA:N/AVA:6203%Chase's DreaMaker mortgage allows down payments as low as 3%.Read review San Diego County Credit Union NMLS#580585Read review 5.0/5 Best for digital convenience N/A5% SDCCU offers conventional loans for as little as 5% down.Read reviewLearn more at PNC PNC NMLS#446303
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 VA:VariesUSDA:640JUMBO:680FHA:620CONVENTIONAL:620 Min. down payment3% Minimum down payment varies by mortgage loan type. View details Learn moreat PNC View details Why we like it Good for: borrowers with low-to-moderate incomes or limited down payments. PNC offers several low-down-payment loans, including one with no mortgage insurance. Pros Posts current mortgage rates on its website. Has an online application for mortgage preapproval and a digital tool to track application progress. Offers several affordable loan options, including FHA, VA, USDA and the PNC Community Loan. Cons Doesn't offer renovation mortgages. In-person service is not available in every state.Read Full ReviewLearn more at Bethpage Federal Credit Union Bethpage Federal Credit Union NMLS#449104
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 VA:N/ACONVENTIONAL:620FHA:580JUMBO:620 Min. down payment3% Bethpage FCU offers conventional loans with as little as 3% down. View details Learn moreat Bethpage Federal Credit Union View details Why we like it Bethpage has a good selection of loan options but no USDA mortgages or renovation loans. And while it offers multiple online conveniences, you have to contact the lender for customized rates. Pros Offers a full array of online conveniences, including loan process updates. Offers financing for cooperatives, a type of home that’s common on the East Coast. Sample mortgage rates available for a variety of loan products. Cons In-person service available only in Queens and on Long Island, New York. USDA loans are not available. Customized rates not available online.Read Full ReviewRead review Alliant NMLS#197185
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Min. down payment3% Alliant Credit Union offers conventional loans with as little as 3% down. View details Read reviewView details Why we like it Good for: first-time home buyers who want to avoid mortgage insurance and prefer a digital application process. Pros 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. Cons 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.Read Full ReviewRead review Bank of America NMLS#399802
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score660 CONVENTIONAL:660FHA:600JUMBO:720VA:620 Min. down payment5% Bank of America offers down payments as low as 3% through its Affordable Loan Solution mortgage program. National / regionalNational View details Read reviewView details National / regional National Why we like it Good for: first-time home buyers looking for low- or no-down-payment options and homeowners interested in a home equity line of credit. Pros Offers down payment and closing cost assistance programs. May give existing customers a discount on mortgage lender origination fees and HELOC interest rates. Receives high marks for customer satisfaction, according to J.D. Power and Zillow. Cons Doesn't offer renovation loans that roll costs into a mortgage.Read Full ReviewRead review Citibank NMLS#412915
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Min. down payment3% Citibank offers down payments as low as 3% through its HomeRun loan program. View details Read reviewView details Why we like it Good for: Buyers who want to explore low down payment mortgages, including government-backed loans and Citi’s proprietary option. Pros Offers a wide variety of loan options, including low-down-payment mortgages and jumbo mortgages. Offers low rates compared with other lenders, according to the latest data. Receives high marks for customer satisfaction, according to J.D. Power and Zillow. Cons Requires help from a loan officer to complete an online mortgage application. Customized mortgage rates not available without making contact. Doesn’t offer renovation loans.Read Full ReviewRead review US Bank NMLS#402761
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 VA:N/ACONVENTIONAL:620FHA:N/AJUMBO:N/AUSDA:N/A Min. down payment5% U.S. Bank offers conventional loans for as little as 5% down. View details Read reviewView details Why we like it U.S. Bank gets high marks for its loan offerings and online customer conveniences — and has competitive fees and mortgage rates. Pros Offers a full line of conventional and government loan products. Provides home equity loans and lines of credit. Allows borrowers to apply and track their loan's progress online. Cons No personalized mortgage rates available online. Published mortgage rates assume an above-average credit score.Read Full ReviewRead review Golden 1 Credit Union NMLS#669333
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CONVENTIONAL:620FHA:N/AJUMBO:N/A Min. down payment3% Golden 1 offers conventional loans with as little as 3% down. View details Read reviewView details Why we like it Golden 1 offers a cost-saving real estate agent program, plus a range of loan types, including jumbos. Pros 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. Cons Does not offer VA or USDA loans. Products available only to California residents.Read Full ReviewRead review Wells Fargo NMLS#399801
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 USDA:620VA:620JUMBO:N/AFHA:620CONVENTIONAL:620 Min. down payment3% Wells Fargo accepts down payments as low as 3% on fixed-rate mortgages through its yourFirst Mortgage program. View details Read reviewView details Why we like it Wells Fargo has a solid selection of mortgage products and offers easy-to-shop rates. Pros Provides numerous online conveniences, including loan application and process updates. Current rates clearly posted for various loan products. Offers a wide variety of loan types and products. Cons Home equity loans and lines of credit suspended due to COVID-19 are still unavailable. Scandals and government actions have damaged consumer trust in recent years. No home improvement loans offered.Read Full ReviewRead review Truist NMLS#399803
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 USDA:N/ACONVENTIONAL:620 Min. down payment3% View details Read reviewView details Why we like it Good for: first-time home buyers, doctors and other borrowers interested in low-down-payment mortgage options. Pros Offers a complete suite of online mortgage application tools and loan tracking. Sample rates are easy to find on the website. Offers a wide variety of loan options, including construction loans and programs for doctors. Cons Customized rates aren't available online without starting an application. For borrowers who prefer to apply in person, branches are limited mostly to the South and East.Read Full ReviewRead review Chase NMLS#399798
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. credit score620 CONVENTIONAL:620FHA:620JUMBO:N/AUSDA:N/AVA:620 Min. down payment3% Chase's DreaMaker mortgage allows down payments as low as 3%. View details Read reviewView details Why we like it Good for: borrowers who want a wide selection of loan products, an in-person experience and comparatively low interest rates. Pros Carries a wide variety of mortgage types and products, including DreaMaker and Standard Agency mortgages, with down payments as low as 3%. Offers low rates compared with other lenders, according to the latest federal data. Offers a customizable mortgage calculator for personalized rate and payment estimates. Cons Doesn't offer home improvement loans, such as FHA 203(k) and HomeStyle. You have to speak with a home loan adviser to complete the application. Home equity lines of credit (HELOC) are currently unavailable.Read Full ReviewRead review San Diego County Credit Union NMLS#580585
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. down payment5% SDCCU offers conventional loans for as little as 5% down. National / regionalRegional View details Read reviewView details Why we like it Good for: Californians who are looking for a conventional or jumbo mortgage and who want to shop rates online. Pros 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. Cons No FHA, VA or USDA mortgages. Loans are available only in California.Read Full ReviewMore from NerdWallet Calculate your mortgage payment Compare mortgage rates How much home can you afford? What is an adjustable rate mortgage
An adjustable rate mortgage 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. » MORE: ARMs vs. fixed-rate mortgages: How to compare 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 3, 5, 7, or 10 years, an ARM mortgage may save you money. Military families or doctors currently 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 mortgage 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 mortgage. » MORE: Pros and cons of an adjustable-rate mortgage 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 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 May 6, 2022 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 nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have 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 have an overall score of 4.5 or higher and dedicate at least 10% of their business to adjustable-rate mortgage loans. 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 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data. To recap our selections... NerdWallet' s Best Adjustable-Rate Mortgage Lenders of 2022
PNC: Best for first-time home buyersBethpage Federal Credit Union: Best for credit union lendingAlliant: Best for credit union lendingBank of America: Best for first-time home buyersCitibank: Best for origination feesUS Bank: Best for traditional lending experienceGolden 1 Credit Union: Best for credit union lendingWells Fargo: Best for digital convenienceTruist: Best for traditional lending experienceChase: Best for rate transparencySan Diego County Credit Union: Best for digital convenience About the author
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