Adjustable-Rate Mortgage Loans

Adjustable-rate mortgage loan features

If you are staying in your home for a short period, an ARM loan may be the right solution for you.

ARM rates

Jumbo ARM rates also available.  Just call us at 1-877-636-0598 for details.

How ARM loans work

With an adjustable-rate mortgage, you have set adjustment periods when the interest rate may increase or decrease, depending on current market conditions. Rate caps are put into place when finalizing your ARM loan, so the interest rate cannot increase or decrease by more than the determined percentage.

Once your introductory period ends, your interest rate adjusts, which means your monthly payments may increase.

Looking for a specific rate?

Sign up for Rate Watch emails. You can get regular updates about our mortgage rates, or we can let you know when our interest rates reach the number you want. This service is available for regular or jumbo mortgage rates.

*Annual Percentage Rate (APR). Interest rates and the APR are subject to change at any time and without notice due to changes in the mortgage market. These rates may also adjust according to credit and property approval based on secondary market guidelines. The rates shown are based on interest rates for customers with a good credit history. Your individual rate may vary. The APR calculation and the principal and interest (P&I) amounts are both based on a loan amount of $150,000 for the purchase of a primary residence, with 80% loan-to-value (LTV), approximately 15 days prepaid interest, origination charges of $795, an additional $422 in prepaid finance charges, plus discount points shown for a 60-day lock. For adjustable rate mortgages (ARMs), the rates may increase after consummation. All of our ARM programs have a 30-year term.

Our loans do not have prepayment penalties, and we normally require the escrow of taxes and insurance, which will be in addition to the principal and interest payments shown above. Be sure you understand the terms of the loan you are applying for. For additional important information regarding adjustable rate mortgages, please click here.

Adjustable-rate mortgage calculator

Use this calculator to find out if an ARM loan is right for you.

Find your adjustable-rate mortgage loan payments

Need more help? Find more mortgage calculators in our Resource Center.

Start your ARM loan application today

Our goal is to help you find the right home financing solution for your situation. We’ll guide you through the adjustable-rate mortgage loan process from start to finish, leaving your confident in your borrowing decision.

You can apply for a regular or jumbo mortgage by phone or online.

Apply online

Apply by phone

1-877-636-0598
Weekdays
8 a.m. – 9 p.m. ET

What you need to apply for an adjustable-rate mortgage

Nationwide Bank has a secure mortgage loan application so you can get the loan you need for your new home. Before beginning your application, gather this basic information about yourself and the property you wish to purchase. If you want to be prequalified, we’ll just need the city and state of where you want to buy property.

You must be 18 years or older to apply for an adjustable-rate mortgage.

If you are applying for an adjustable-rate mortgage with another person, you will need to have his or her ID, residence, job and income information, too.

Top adjustable-rate mortgage questions

Q. With adjustable-rate mortgages, what does 3/1, 5/1 and 7/1 mean?
A. The first number shows how many years you will keep the same interest rate. The second number shows how often the rate can change at the end of that period. If you have a 3/1 mortgage, for example, you would keep the same interest rate for three years. After that, your interest rate can change every year.

Q. What is included in closing costs for an ARM loan?
A. Closing costs may include the following:

• Prepaid interest
• Points
• Appraisal and title services
• Private mortgage Insurance, FHA mortgage insurance premium or VA funding fee, whichever may be applicable
• Miscellaneous costs, such as an underwriting fee or tax service fee

Most of the fees described above are finance charges that affect your APR which, in addition to interest, represents the cost of credit to you.

Q. What are points?
A. Points are prepaid fees, often, but not always, used to gain a lower interest rate on your mortgage. One point is 1% of your mortgage loan amount. For a $200,000 home, one point would be $2,000. Some points may be tax deductible; consult your tax advisor.

Q. How much does it cost to lock in my rate?
A. Nationwide Bank charges $450 commitment fee for you to lock in your mortgage rate.

Q. What types of mortgages does Nationwide Bank offer?
A. We offer mortgages for primary and secondary houses, condos, townhouses and investment properties.

Q. How do I get an adjustable-rate mortgage online?
A. Fill out our online application. Then once your application is submitted, a Nationwide Bank Mortgage Specialist will call you to discuss the rest of the steps in the mortgage loan process.  You can also apply by phone by calling 1-877-636-0598, 8 a.m. to 9 p.m. ET, weekdays.

Q. Can I get approved for a mortgage before I have a house?
A. You can get prequalified for your mortgage. Please note you cannot lock in your rate until you have a house to buy and you pay your commitment fee.

Q. Do I have to pay for an appraisal?
A. Yes. It is included in your closing costs.

Q. What do I need to know before buying a house?
A. The U.S. Department of Housing and Urban Development offers helpful information about buying a home. You can also talk to one of their housing counselors for free or for a small fee.