October 13, 2026
A small group of homeowners is about to get a much bigger mortgage bill. According to CNBC, citing ICE Mortgage Technology, roughly 150,000 homeowners with adjustable rate mortgages face their first interest rate adjustment this year, and CNBC reports the median affected borrower is looking at a payment increase of about $1,080 a month.
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According to CNBC, citing ICE Mortgage Technology, roughly 150,000 homeowners with adjustable rate mortgages face their first interest rate adjustment this year, including about 64,000 whose loans adjust between August and December. Another 186,000 are scheduled to adjust in 2027 and 155,000 in 2028. Many of these borrowers locked in very low introductory rates in 2020 and 2021 and are now reaching the end of that fixed period.
An adjustable rate mortgage, or ARM, gives the borrower a fixed rate for an initial period, most commonly 5 or 7 years. When that period ends, the rate resets based on a market index plus a set margin written into the loan, and it typically keeps adjusting on a schedule after that. Caps in the loan limit how much the rate can rise at the first adjustment, at each later adjustment and over the life of the loan. Borrowers who started with a rate in the 2% or 3% range in 2020 or 2021 are resetting into a much higher rate environment.
CNBC reports the median affected borrower is seeing a monthly payment increase of about $1,080. The real number for any one homeowner depends on the loan balance, the index, the margin and the caps in their specific loan. A small share of borrowers are actually seeing their payments decrease, usually because of how their particular index and margin line up with current rates, so the outcome is not the same for everyone.
Many homeowners are not certain whether they have a fixed rate loan or an ARM. Check your closing documents, your monthly statement or call your servicer. If you have an ARM, find out the exact adjustment date, the index and margin, and the caps that limit each increase. Federal rules require servicers to send a notice roughly 7 to 8 months before the first adjusted payment is due, so do not set that letter aside when it arrives.
It depends on the numbers. Some homeowners will be able to budget for the higher payment, especially if the caps keep the increase manageable. Others may come out ahead by refinancing into a fixed rate loan before the adjustment, though a refinance carries closing costs and today's fixed rates may be well above the introductory rate they had, so the comparison has to be run on the actual loan. Selling is another option for owners who cannot carry the new payment. Talk with a lender while there is still time, not in the month the payment changes. This is general information, not financial advice, so review your specific loan terms with a licensed mortgage professional.
Adjustable rate mortgages make up only about 5.6% of U.S. mortgages, and in Staten Island and Brooklyn the 30 year fixed is far more common, so most local homeowners are not affected. For those who are, the change can be significant. ARMs have tended to be more common on larger loan amounts, so Brooklyn buyers of higher priced homes, condos and co-ops who bought in 2020 or 2021 are worth a quick check. If you are not sure what kind of loan you have, or you know someone who recently mentioned a rate change, it is worth confirming now rather than when the new bill arrives.
Questions about how this affects your home in Staten Island or Brooklyn? Work with Joseph Ranola, or text or call (917) 905-2541. New episodes of Daily Tesla News break down the NYC real estate stories that move the market.
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