Prudential Borrowing ARM Products

Our lowest ARM rates

5-year ARM
7-year ARM
10-year ARM
15-year ARM

These rates assume you have a FICO® Score of 680+ and a down payment of at least 20%, that the loan is for a single-family home as your primary residence and that you will purchase up to one mortgage discount point in exchange for a lower interest rate. Connect with a mortgage loan officer to learn more about mortgage points. See an ARM estimated monthly payment and APR example.1

What is an adjustable-rate mortgage (ARM) loan?

An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index.  The ARM loan may include an initial fixed-rate period that is typically 5 to 15 years.  The interest rate then may change (adjust) each year thereafter once the initial fixed period ends.


For example, with a 5/1 ARM loan for a 30-year term, your interest rate would be fixed for the initial 5 year and could fluctuate up or down each subsequent year for the next 25 years.

Should I get a fixed-rate loan or an ARM loan?

ARM loans typically feature lower rates and monthly payments than comparable fixed-rate loans during the initial rate period, but rates could increase or decrease once the initial rate expires.  While many home buyers prefer the security of a fixed-rate mortgage, an ARM can be a good choice, too — especially if you know you’ll be moving or refinancing within the next few years.

5-year ARM loans

5/1 ARMs generally provide the lowest interest rates and monthly payments during the initial rate period.  These loans are ideal for borrowers who don’t want a long-term mortgage.

10-year ARM loans

10-year ARMs are increasingly popular as they combine significant savings for the initial rate period with longer protection form market-based interest-rate fluctuations.

ARM loan benefits and considerations

The best short-term ARM rates

Conventional adjustable-rate mortgage (ARM) loans typically feature lower interest rates and Annual Percentage Rates (ARPS) during the initial rate period than comparable fixed-rate mortgages.

Low monthly payments

An adjustable-rate mortgage (ARM) loan lets you keep your monthly payments low during the initial term of your home loan, giving you the option to pay down your mortgage faster.

ARM home loan eligibility requirements

Credit history

Conforming loans are loans that conform to Fannie Mae and Freddie Mac guidelines.  They are a good choice for borrowers with very good credit, which generally means a FICO® score of 680 or higher.  There are also established guidelines for income and other personal financial information.

ARM loan amount

The loan amount for a conforming ARM is generally up to $970,800 for a single-family home, though limits may be higher in regions where home prices are higher.  Jumbo ARMs borrowers to exceed the conforming loan limit for higher-valued homes.

Down payment

Most conventional ARM loans will require at least 10 percent as a down payment.  For loans with lower down payment requirements, explore government-backed mortgages like VA loans and FHA loans or speak to your mortgage loan officer about other options that may be available.  If the down payment is less than 20 percent on a conventional loan, mortgage insurance may be required.


Compare mortgage options to learn more or contact a loan officer to find out which mortgage option may be the best fit for your individual needs.

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Loan approval is subject to credit approval and program guidelines.  Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice.

© 2022 Prudential Borrowing ARM Rates.
Registered Mortgage Broker Departments of Finance NY,NJ,CT,FL,GA,PA. All Loans arranged through third parties.

1. ARM estimated monthly payment and APR example: A $475,000 loan amount with a 30-year term at an interest rate of 5.875% with a down payment of 20% and 0.95 discount points purchased would result in an initial estimated monthly payment of $2,810 with an Annual Percentage Rate (APR) of 6.48%.


Estimated monthly payment and APR calculation are based on a fixed-rate period of 7 years that could change in interest rate each subsequent year for the next 23 years, a down payment of 20% and borrower-paid finance charges of 0.95% of the base loan amount, plus origination fees if applicable. After the 7-year introductory period: the APR is variable and is based upon an index plus a margin. The APR will vary with a predetermined index as published in the Wall Street Journal. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payment does not include amounts for taxes and insurance premiums. Adjustable-rate loans and rates are subject to change during the loan term. That change can increase or decrease your monthly payment.


The rates shown above are the current rates for the purchase of a single-family primary residence based on a 70-day lock period. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your guaranteed rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors.


To lock a rate, you must submit an application to Prudential Borrowing and receive confirmation from a mortgage loan officer that your rate is locked. Application can be made by calling 888-585-5450, by starting your application online, or by meeting with a mortgage loan originator.


Prudential Borrowing:

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