Adjustable-Rate Mortgage (ARM)

An adjustable-rate mortgage (ARM) starts with a fixed rate for an introductory period — typical structures are 5/6, 7/6, and 10/6 ARMs, where the first number is years of fixed rate and the second is how often the rate adjusts afterward (every 6 months). After the fixed period, the rate resets based on a benchmark (usually SOFR) plus a margin.

ARMs suit borrowers who expect to sell, refinance, or pay off the loan before the adjustment period begins. They typically offer lower introductory rates than fixed mortgages; caps on periodic and lifetime adjustments limit how high the rate can go.

Why it matters for Milo customers

Milo offers ARM options on select crypto-backed mortgage programs. Borrowers who expect to refinance after crypto appreciation may prefer an initial low-rate period (5/1 or 7/1 ARM) over a fixed 30-year.

---