10 Best Adjustable-Rate Mortgage Lenders of 2024

Last updated on October 3, 2024
Written by 
Holden Lewis
Senior Writer/Spokesperson
Johanna Arnone
Edited by 
Johanna Arnone
Assigning Editor
Fact Checked
Holden Lewis
Written by 
Senior Writer/Spokesperson
Johanna Arnone
Edited by 
Johanna Arnone
Assigning Editor
Fact Checked

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10 Best Adjustable-Rate Mortgage Lenders of 2024

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Lender
NerdWallet Rating
Min. credit score
Min. down payment
Learn more
NBKC

NBKC: NMLS#409631

Top 3 most visited 🏆
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at NBKC
at NBKC
Home loans overall
Best for ease of application

620

3%

Better

Better: NMLS#330511

4.5
/5
Home loans overall
Best for competitive mortgage rates

620

3%

5.0
/5
Home loans overall
Best for online convenience

620

3%

Andrews Federal Credit Union

Andrews Federal Credit Union: NMLS#410421

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on NerdWallet
4.5
/5
Home loans overall
Best for credit union lending

620

3%

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on NerdWallet
Flagstar

Flagstar: NMLS#417490

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on NerdWallet
5.0
/5
Home loans overall
Best for overall lending experience

N/A

5%

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on NerdWallet
PNC

PNC: NMLS#446303

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on NerdWallet
5.0
/5
Home loans overall
Best for overall lending experience

620

3%

LEARN MORE
on NerdWallet
NBKC
Learn more
at NBKC
at NBKC
NBKC

NBKC: NMLS#409631

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItNBKC has a user-friendly website and low average rates, but the mobile app is not aimed at mortgage borrowers and browsing customized mortgage rates requires supplying your name and contact information.
Pros
  • Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
  • VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
  • Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
Cons
  • HELOCs and no-down-payment loans are available only in the Kansas City metro area.
  • Mobile app focuses on online banking, not mortgages.
  • You’ll need to share contact information to see customized mortgage rates.
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Better

Better: NMLS#330511

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItOnline-only lender Better offers a range of mortgage types and a one-stop shopping experience, though some borrowers may be turned off by the lender’s lack of chat support or a mobile app.
Pros
  • Borrowers can apply, lock in a rate and receive a commitment letter within one day.
  • Offers both HELOCs and home equity loans with a high borrowing limit of 90% CLTV.
  • Offers mortgages for manufactured homes, as well as financing for self-employed borrowers.
Cons
  • No mobile app; customer service is by email or phone only.
  • Borrower must provide contact information to see customized rates.
  • Does not offer renovation or construction loans.
Rate

Rate: NMLS#2611

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItRate boasts a streamlined application process, with full underwriting in as little as one business day, though average fees are higher than many competitors’.
Pros
  • Fully underwritten mortgage approval in as little as one day for qualified borrowers.
  • Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
  • Advertises a HELOC that can be funded in as few as five business days.
Cons
  • Origination fees are on the high side, according to the latest federal data.
  • HELOC requires immediate, full withdrawal of funds.
Andrews Federal Credit Union
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on NerdWallet
Andrews Federal Credit Union

Andrews Federal Credit Union: NMLS#410421

4.5
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItThe relatively small Andrews Federal Credit Union offers some mighty advantages, like showing detailed, personalized interest rates without requiring contact info and making it easy to get out of paying an origination fee.
Pros
  • Has a robust and user-friendly tool for customized mortgage rates.
  • Easy to qualify for credit union membership.
  • Offers HELOCs and home equity loans.
Cons
  • Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
  • Does not offer less common mortgage types, like renovation or construction home loans.
Flagstar
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on NerdWallet
Flagstar

Flagstar: NMLS#417490

5.0
Home loans overall
NerdWallet rating
Min. credit score

N/A

Min. down payment

5%

Why We Like ItFlagstar Bank stands out for its range of accessible loans and programs, including loans with flexible requirements and down payment grant options. Its mortgage operations will be acquired by Mr. Cooper in 2024.
Pros
  • Conventional loan terms extend to 40 years, which is unusually flexible.
  • Offers options for high-balance mortgages.
  • Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
  • Reported average time to close (20-30 days) is faster than industry standard.
Cons
  • The lender’s mobile app is focused on banking, not mortgages.
  • Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
PNC
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on NerdWallet
PNC

PNC: NMLS#446303

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItPNC Bank has a variety of appealing mortgage options, including jumbo loans, programs for first-time home buyers and home equity lines of credit.
Pros
  • Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
  • Jumbo loans available with minimum down payments of 5%.
  • Customizable mortgage rates are posted online.
Cons
  • Average mortgage rates are on the high side, according to the latest federal data.
  • In-person service is not available in every state.
  • You’ll have to supply personal data or account info to get answers by phone.
Alliant
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on NerdWallet
Alliant

Alliant: NMLS#197185

4.5
Home loans overall
NerdWallet rating
Min. credit score

N/A

Min. down payment

3%

Why We Like ItAlliant Credit Union offers some harder-to-find mortgage types and lets you customize interest rates online, but navigating their customer service options can be tricky as a non-member.
Pros
  • Mortgage borrowers do not need to become members of the credit union until they’ve reached the closing process, so interested home buyers can apply without committing to membership.
  • Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information.
  • No application fee.
Cons
  • Customer service can be difficult to access as a non-member and may require sharing personal information.
  • Home equity loans are not available.
Navy Federal
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on NerdWallet
Navy Federal

Navy Federal: NMLS#399807

5.0
Home loans overall
NerdWallet rating
National / regional

National

Min. down payment

0%

Why We Like ItNavy Federal is known for VA lending, but it's the flexible VA-like loan options that truly stand out. While you don't have to be a current or former servicemember to take advantage of them, you will need a military connection to join the credit union.
Pros
  • Offers unique no-down-payment and no mortgage insurance loan options for military and civilian borrowers.
  • 24/7 customer service supports borrowers stationed overseas.
  • Has both home equity loans and lines of credit.
Cons
  • Borrowers must join the credit union before applying for a mortgage.
  • Does not offer FHA, renovation or construction loans.
  • We sometimes waited longer than 10 minutes before connecting with a customer service representative.
Truist
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on NerdWallet
Truist

Truist: NMLS#399803

4.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItTruist stands out for its range of accessible mortgage products, including government or conventional loans with flexible credit and down payment requirements.
Pros
  • Offers mortgage options focused on affordability.
  • Convenient online application.
  • Offers a HELOC and construction loans.
Cons
  • HELOCs are not available in every state.
  • Borrowers must reach out for customized rates.
Pennymac
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on NerdWallet
Pennymac

Pennymac: NMLS#35953

5.0
Home loans overall
NerdWallet rating
Min. credit score

620

Min. down payment

3%

Why We Like ItPennymac, known for its government loans, stands out for a transparent digital experience. Interest rates tend to be low, but origination fees may be a bit high.
Pros
  • Easy to personalize a quote and apply online.
  • Can lock in a rate before you’re under contract, earlier than most lenders.
  • Perks include a 1% interest rate buydown and “refinance later” cash bonus.
Cons
  • Origination fees are on the higher end, according to the latest federal data.
  • Online chat is available only in the logged-in experience.
  • No home equity lines of credit or renovation loans.
Video preview image

When an adjustable-rate mortgage is a good idea

Here are some situations in which an ARM makes sense:

  1. You’ll own the house for a short time. If you might relocate within three, five, seven or 10 years, an ARM may save you money. Military members and their families or doctors in a residency program are two examples of borrowers who may anticipate a move.

  2. You plan to pay off the mortgage quickly. Do you expect a financial windfall, such as an inheritance or lawsuit settlement, in the next few years? An ARM may allow you to make smaller monthly mortgage payments until the money comes in and you pay off the loan.

  3. You expect fixed-rate mortgage rates to decrease. It’s risky and hard to predict, but if you expect fixed-rate mortgage rates to drop below current ARM rates before your introductory period expires, an adjustable-rate mortgage may yield savings until fixed rates drop. Be aware that this option requires you to eventually refinance to a fixed-rate mortgage, which means choosing a lender, getting approved and paying closing costs, just like with your ARM.

When an adjustable-rate mortgage is a bad idea

An ARM probably isn’t the right choice if:

  1. You plan to put down roots. If you’re buying your forever home and have no plans to move, a fixed-rate mortgage might be more appropriate. While it may have a slightly higher rate, a fixed-rate mortgage involves less risk than an adjustable-rate mortgage, so your investment is better protected.

  2. You want a predictable mortgage payment. Sure, the interest rate on a fixed-rate mortgage may initially be higher than that of an ARM, but you’ll never have to worry about it going up, and you’re always free to refinance your mortgage if rates drop significantly in the years ahead.

  3. Your budget can’t handle a larger mortgage payment. Maybe you’re thinking about going back to school, starting a family or launching a business. These life changes could affect your income in the years ahead. If you’re not 100% sure you could handle a mortgage payment that gets bigger when rates adjust higher, stick with the predictability of a fixed-rate mortgage.

More from NerdWallet

Last updated on October 3, 2024

Methodology

The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.

The lenders on this page are chosen using this methodology:

NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.

For inclusion in this roundup, lenders must earn 4.5 stars or above according to our home loans overall methodology and must confirm the availability of adjustable-rate loans in NerdWallet’s annual mortgage lender survey.

NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2022 Home Mortgage Disclosure Act data for origination volume, origination fee, average interest rate and share-of-product data.

To recap our selections...

NerdWallet's Best Adjustable-Rate Mortgage Lenders of 2024

  • NBKC: Best for ease of application
  • Better: Best for competitive mortgage rates
  • Rate: Best for online convenience
  • Andrews Federal Credit Union: Best for credit union lending
  • Flagstar: Best for overall lending experience
  • PNC: Best for overall lending experience
  • Alliant: Best for credit union lending
  • Navy Federal: Best for military borrowers
  • Truist: Best for competitive mortgage rates
  • Pennymac: Best for rate transparency
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