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Thousands of homeowners<\/a> with adjustable-rate mortgages may soon face a potential spike in the interest rate<\/a> that’s applied to their loan.<\/p>\n About 150,000 borrowers<\/a> with ARMs are scheduled to see their interest rates adjust for the first time this year, with another 186,000 facing their first adjustment in 2027 and 155,000 doing so in 2028, according to ICE Mortgage Technology, a mortgage data and technology company. Of this year’s total, ICE data provided to CNBC shows about 64,000 were scheduled for their first adjustment between August and December.<\/p>\n Because rates have climbed since many of these borrowers took out their loans, their monthly payments may jump by hundreds of dollars \u2014 and in some cases, more than $1,000, according to ICE data. Meanwhile, a small share could see their rate and monthly payment go down. <\/p>\n<\/div>\n Unlike a fixed-rate mortgage, an ARM has an interest rate that can change over time. ARMs often start with an introductory rate that’s lower than on fixed-rate loans<\/a>, but after an initial period \u2014 often five, seven or 10 years \u2014 the rate begins adjusting. Once they begin,\u00a0those resets typically\u00a0happen\u00a0every six months or one year and\u00a0can raise or lower\u00a0the homeowner’s monthly payment.\u00a0<\/p>\n “Basically, when you took out that adjustable-rate mortgage, you got a little bit lower rate in exchange for the possibility that rates could rise and you could be adversely affected,” said Laurie Goodman, fellow and founder of the Housing Finance Policy Center at the Urban Institute, a nonprofit think tank. “Well, unfortunately that scenario happened.”<\/p>\n<\/div>\n There are 3.1 million outstanding ARMs, the largest volume in 5.5 years, according to ICE. Most of them \u2014 2.05 million \u2014 are still in their initial fixed period, and 1.05 million have matured into their adjustable phase, ICE data shows. <\/p>\n ARMs make up just 5.6% of the roughly 55.4 million active mortgages in the U.S.<\/p>\nARMs are a small slice of 55.4 million mortgages<\/h2>\n