Thousands of Homeowners Are About To See Their Mortgages Jump $1K a Month After Taking a Common Loan Risk 

More and more homeowners are looking for ways to buy a home in an affordable way. An adjustable-rate mortgage (ARM) is a common avenue to take, but it comes with a risk. A risk that about 150,000 homeowners are about to learn the hard way.That is the number of homeowners with ARMs who are scheduled to see their interest rates adjust for the first time this year, according to ICE Mortgage Technology, a mortgage data and technology company.An additional 186,000 will face their first adjustment in 2027 and 155,000 in 2028.For those about to see their rate adjust by year's end, there’s the potential for all the savings they locked in to fly out the window given the current rate. Which then begs the question for the thousands of homeowners looking at ARMs right now: Is it worth the risk?The drawback of an adjustable-rate mortgageARMs accounted for 10.3% of mortgage applications in late September, up from 7% at the beginning of the year and the highest share since October 2025.This comes at a time when the current 30-year fixed mortgage rate is hovering in the mid-7%. As of Oct. 15, the rate for a fixed mortgage stands at 7.4%. Meanwhile, the national average for a 5/1 ARM APR stands at ...