The article explains adjustable-rate mortgages (ARMs), which carry a fixed introductory rate for a set period before rates begin to adjust. About 92% of U.S. home loans are fixed-rate, while around 8% of borrowers choose ARMs. ARM rates are typically tied to SOFR plus a lender margin that often ranges from 2% to 3.5%, and adjustment caps limit increases. ARMs may suit homeowners planning to move soon, real estate investors, or buyers during high-interest periods, and borrowers can refinance into a fixed-rate loan if they stay longer than expected.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on fortune.com ↗
Related news
- Current ARM mortgage rates report for Oct . 16 , 2026
Adjustable-rate mortgages (ARMs) usually offer a low fixed rate for three to 10 years before adjusting based on a benchmark such as SOFR plus a lender margin, typically 2% to 3.5%, subject to rate caps. They may suit short-term homeowners, property investors, and buyers during high-interest periods. Fixed-rate loans account for roughly 92% of U.S. mortgages, while about 8% of borrowers choose ARMs. The article also outlines common structures such as 5/1 and 10/6 ARMs and explains how borrowers can refinance from an ARM to a fixed-rate loan.
- Current refi mortgage rates report for Oct. 15, 2026
According to Mortgage Research Center data, the average refinance rate on a 30-year fixed-rate home loan is currently 7.492%. The article explains that refinancing replaces an existing mortgage with a new loan, usually to secure a lower rate or tap home equity, and requires meeting the lender’s criteria. Closing costs typically range from 2% to 6% of the loan amount, or about $6,000 to $18,000 on a $300,000 loan. A common guideline is to consider refinancing when the new rate is at least 1 percentage point below the current rate. The article notes that rates remain elevated after the Fed raised its federal funds rate in September 2026 to combat stubborn inflation, and relief seems unlikely soon.
- Mortgage rates today , Oct . 15 , 2026
The average rate on a 30-year fixed-rate conforming mortgage is 7.449%, up from 7.388% the prior day, while the 15-year average is 6.607%, up from 6.576%. For a $300,000 loan, the calculator estimates about $451,380.79 in interest over 30 years at 7.449%, versus about $173,580.21 over 15 years at 6.607%. Other averages include 7.589% for 30-year jumbo, 6.911% for 30-year FHA, 6.969% for 30-year VA and 7.161% for 30-year USDA loans. The Fed raised its federal funds rate to 3.75%–4.00% at its September 15–16 meeting, with the next meeting set for October 27–28. In the week ending October 9, mortgage applications fell 2.7% from a week earlier, and ARMs made up 10.5% of applications, the highest since October 2025, as borrowers sought lower monthly payments.
- Rising mortgage rates and home prices sidelining buyers but now is the time to purchase , report says
- Thousands of homeowners face adjustable-rate mortgage resets — and much higher payments
ICE Mortgage Technology data shows about 150,000 borrowers with adjustable-rate mortgages (ARMs) face their first rate adjustment this year, about 64,000 of them between August and December, with another 186,000 facing it in 2027. Because rates have climbed since many of these loans were taken out, monthly payments may rise by hundreds of dollars and in some cases more than $1,000, though a small share could see their payments fall. There are 3.1 million outstanding ARMs, the largest volume in 5.5 years, making up just 5.6% of roughly 55.4 million active U.S. mortgages. For example, seven-year ARMs originated in 2019 that reset this year have a median initial rate of 3%, and at a median adjusted rate of 6.06% their payment would jump by a median $1,080. Borrowers who want to stay can either keep their current loan or refinance into a fixed-rate mortgage, and lenders must notify them 210 to 240 days before the first adjusted payment is due.
- UK bank shares fall on report of potential tax hike in Oct. 28 budget
Shares of Lloyds and NatWest fell about 2.3% and 2.05% after The Guardian reported that Finance Minister John Healey plans to raise bank taxes in his October 28 budget to offset fiscal damage from the Middle East war. One option is reversing Jeremy Hunt's cuts to the bank surcharge, which could raise over £2 billion a year, with industry expecting a rise from 3% to 8%. The TUC has lobbied for 16%, while lobby groups warn that higher taxes could push banks to move staff and business out of the UK. The debate comes as the big four banks made £200 billion in pre-tax profit over five years, and rising borrowing costs could as much as halve the £24 billion fiscal cushion.
Related markets
Latest news
- Winning over Vingroup and Sun Group with concrete and special materials: Vietnamese company's profit up 136%, chairman speaks out
Song Da Cao Cuong (SCL) reported Q3/2026 profit of VND 38 billion, up 136%, on net revenue of over VND 263 billion (up nearly 98%), while gross profit margin rose from about 36% to 41%. For the first nine months, revenue reached nearly VND 666 billion (up 81%) and after-tax profit nearly VND 94 billion, already exceeding more than 110% of its full-year profit target. Chairman Kieu Van Mat attributed the results to technology upgrades, production line optimization and capacity expansion, with several new plants expected to start operations by November 2026. The company said it spent more than two years testing its products before Vingroup accepted them; Vingroup's share of its business has fallen to about 25% as customers expanded to around 10 major groups and exports began to Laos, Cambodia and the Philippines. Over the past two years, the company has invested about VND 1,000 billion in factories and technology.
- Coteccons Chairman Bolat Duisenov reveals new direction: expanding home construction for individual customers
At the annual general meeting on October 20, Coteccons (HoSE: CTD) set fiscal 2027 targets of VND 42,000 billion in revenue and VND 1,050 billion in after-tax profit, and said it is considering expanding into residential construction for individual customers (B2C). In fiscal 2026, net revenue reached VND 34,340 billion (up 38%, 115% of plan) and after-tax profit VND 788 billion (up 73%); new contract wins totaled VND 60,307 billion and backlog was about VND 70,000 billion. In the first quarter of the new fiscal year, the company booked revenue of VND 11,270 billion and profit of VND 306 billion, but new contract value of VND 14,519 billion was lower than a year earlier; the company said it is tightening criteria for selecting clients and projects. Coteccons is also working with Microsoft, is expected to become a strategic partner of Workday, and targets raising its ROE from 10% to 15-18% by 2030.
- UPS Yields 6.7% After Firing Amazon. Here's Whether the Dividend Survives 2027.
UPS shares yield 6.7% as of October 16. The company has moved away from high-volume, low-margin Amazon deliveries and froze its dividend earlier this year, ending a 16-year streak of increases. The article says the payout will likely remain frozen through 2026 and 2027, citing competition from 10- and 30-year Treasury yields above 5% and other industrial dividend payers, but calls the dividend's safety questionable: UPS generated $5.47 billion in free cash flow in 2025, with $5.4 billion going to dividends, and free cash flow is projected to fall to $5.05 billion in 2026 and $5.01 billion in 2027, with the dividend absorbing about 98% of 2026 free cash flow. Rising competition and high fuel prices add pressure, and the article suggests investors may find more safety in the industrial sector.
- Asian shares mostly decline after AI stocks lead a rebound on Wall Street
Asian shares mostly fell in cautious trading on Tuesday after AI-related stocks rebounded on Wall Street, while other sectors stayed shaky and oil prices stayed high. Japan's Nikkei 225 slipped 0.6% to 64,512.35 in early trading, South Korea's Kospi dropped 2.8%, and Australia's S&P/ASX 200 lost 0.8%. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq gained 1.1%, helped by Nvidia's 1.4% gain, while most stocks outside AI and tech fell and the Dow slipped 0.1%. The 10-year Treasury yield climbed to 5.14%, and U.S. crude rose to $103.50 a barrel and Brent to $109.47, as uncertainty about when the energy industry will return to normal after the war with Iran means oil is unlikely to ease soon.
- Asian shares mostly decline after AI stocks lead a rebound on Wall Street
Asian shares mostly fell in cautious trading Tuesday after AI-related stocks rebounded on Wall Street, while other sectors stayed shaky and oil prices remained high. Japan's Nikkei 225 slipped 0.6% to 64,512.35, Australia's S&P/ASX 200 lost 0.8% to 8,772.10, and South Korea's Kospi dropped 2.8% to 5,605.31. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq rallied 1.1%, helped by Nvidia, while the Dow fell 0.1%. The 10-year Treasury yield climbed to 5.14%, and U.S. crude rose 0.15% to $103.50 a barrel as uncertainty over the war with Iran kept oil prices elevated.
- What Could X-Energy (XE) Gain From Its 960MW Indiana Nuclear Project?
X-Energy (NasdaqGS:XE), American Electric Power and Amazon agreed to assess a 960 MW advanced nuclear project in Indiana using Xe-100 reactors, on a former coal plant site. Under the joint development agreement, Amazon would provide development funding and commit to a long-term power purchase. The article says the deal offers commercial validation for X-Energy's reactor platform rather than immediate financial relief, as the company, with a $4.3b market cap, reported $150.28 million in revenue, a $448.87 million loss, and a 20.2x price-to-sales ratio. The next key milestone is whether the study reaches a final investment decision for the Sullivan County site.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.