Adjustable-Rate Mortgages

Get more from your home and money

Lower Initial Payments

Keep cash on hand when you start out with lower payments.

Lower Initial Rate

Initial rates are typically below those of fixed-rate mortgages.

Interest Rate Ceilings

Limit your risk with protection from interest rate changes. 

Get more from your home and money
Application Requirements

Qualify for an adjustable-rate home loan

Create an account in our online application platform. Here's what you'll need to apply for an adjustable-rate mortgage.

  • Social Security number
  • Employer contact information
  • Estimated income, assets and liabilities
  • Details on the property you're interested in buying
Benefits

Vary rates for varying needs

Regular adjustments

After the initial period, your interest rates adjust at specific adjustment dates.

Choose your term

Choose from a variety of terms and rate adjustment schedules.

Buffer market swings

Interest rate ceilings protect you from large swings in interest rates.

Pay online

Make mortgage payments online with your First Citizens checking account.

Get assistance

If you're eligible for down payment assistance, you may be able to make a lower lump sum payment.

Homeowner Insurance

Keep your home and your family safe

Get the right homeowners insurance to meet your family's needs.
Auto Insurance

Protect all your vehicles

Find the right combination of coverage for your vehicle and its passengers.
FAQ

People often ask us

An adjustable-rate mortgage, or ARM, is a type of home loan that starts with a low interest rate—typically below the market rate—that may be adjusted periodically over the life of the loan. As a result of these changes, your monthly payments may also go up or down. Some lenders call this a variable-rate mortgage.

Changes to your interest rate depend on the terms of your loan. Many adjustable-rate mortgages are adjusted yearly, but others may adjust monthly, quarterly, semi-annually, or once every 3 to 5 years. Typically, the interest rate is fixed for an initial period of time before adjustment periods begin. For example, a 5/6 ARM is an adjustable-rate mortgage that's fixed for the first 5 years before becoming adjustable twice a year—once every 6 months—afterwards.

Interest rates for adjustable-rate mortgages depend on a number of factors. First, lenders look to a major mortgage index to determine the current market rate. Typically, an adjustable-rate mortgage will start with a teaser interest rate set below the market rate for a period of time, such as 3 or 5 years. After that, the interest rate will be a combination of the current market rate and the loan's margin, which is a preset number that doesn't change.

For example, if your margin is 2.5 and the market rate is 1.5, your interest rate would be 4% for the length of that adjustment period. Many adjustable-rate mortgages also include caps to limit how much the interest rate can change per adjustment period and over the life of the loan.

Normal credit approval applies.

Not applicable in all states.

Links to third-party websites may have a privacy policy different from First Citizens Bank and may provide less security than this website. First Citizens Bank and its affiliates are not responsible for the products, services and content on any third-party website.

Bank deposit products are offered by First Citizens Bank. Member FDIC and an Equal Housing Lender. icon: sys-ehl.