Understanding ARM vs. Fixed-Rate Mortgages with Brian Jahanbin, CEO of Maxim Lending
With over 20 years of experience and more than $2 billion in funded transactions, Brian Jahanbin shares insights on how mortgage strategy impacts real estate investors.
Q: Brian, for those who may not know, can you briefly introduce yourself and Maxim Lending?
Brian Jahanbin: Absolutely. I’m the CEO and founder of Maxim Lending , and I’ve been in the mortgage and real estate finance industry for over 20 years . Throughout my career, I’ve personally overseen more than $2 billion in funded transactions , helping homeowners and investors structure loans that align with their financial goals.
At Maxim Lending, our focus is on personalized lending solutions —whether that’s helping a first-time buyer get approved or guiding an experienced investor on how to leverage financing to maximize returns.
Q: Investors often hear about Adjustable-Rate Mortgages (ARMs) versus Fixed-Rate Mortgages. Can you explain the difference?
Brian Jahanbin: Sure. A Fixed-Rate Mortgage keeps the same interest rate for the entire term—usually 15 or 30 years. That means your payment stays consistent, which offers predictability and peace of mind.
On the other hand, an Adjustable-Rate Mortgage , or ARM , starts with a lower fixed rate for an initial period—say 3, 5, 7, or 10 years—then adjusts based on market conditions. The rate is tied to an index, plus a margin set by the lender.
So, the key difference is stability versus flexibility: fixed-rate loans offer long-term certainty, while ARMs often provide lower initial rates and potential cost savings —especially if you don’t plan to hold the property long-term.
Q: Why might an ARM be a better fit for real estate investors?
Brian Jahanbin: That’s a great question. Many real estate investors don’t plan to hold a property for 30 years. They might be flipping a home, refinancing in a few years, or selling after a short-term value-add play.
In those cases, an ARM can be a smart strategy because it typically comes with a lower interest rate during the initial fixed period—sometimes 0.5% to 1.5% lower than a 30-year fixed loan.
That lower rate means stronger cash flow and a higher return on investment during the years they actually own the property. Plus, if the market improves or rates drop, they can refinance before any rate adjustments kick in.
Q: So, when would you recommend a Fixed-Rate Mortgage instead?
Brian Jahanbin: Fixed-rate loans are ideal when you’re planning a long-term hold or you simply want payment stability . If you’re building a rental portfolio and want predictable monthly expenses, a fixed rate can give you that peace of mind—especially if you believe rates will rise in the future.
It’s really about aligning your loan with your investment timeline and risk tolerance . Some investors prefer to lock in today’s rates for the long haul, while others are comfortable taking advantage of short-term savings through ARMs.
Q: How do you help clients decide between the two at Maxim Lending?
Brian Jahanbin: We always start with a personalized analysis . Our team looks at the investor’s goals, holding period, and exit strategy —then runs detailed comparisons between ARM and fixed options .
For example, we’ll compare a 5/1 ARM versus a 30-year fixed, showing the cash flow difference, breakeven point, and total interest savings. This allows clients to make data-driven decisions based on real numbers, not guesswork.
It’s never one-size-fits-all. The right loan is the one that fits the investor’s financial plan and time horizon .
Q: Given the current rate environment, what’s your advice for investors right now?
Brian Jahanbin: We’re in a unique market cycle. With recent Fed rate cuts and signs of stabilization, ARMs are becoming more attractive again because investors can secure lower introductory rates and still have the flexibility to refinance if rates continue to drop.
For anyone looking to acquire or refinance investment properties , it’s important to explore both options—ARM and fixed—before locking in. Sometimes a hybrid approach, where you diversify your portfolio across both loan types, can balance risk and reward.
Q: Any final thoughts you’d like to share with investors?
Brian Jahanbin: Real estate investing is as much about strategic financing as it is about finding the right property. The loan you choose directly affects your cash flow, risk exposure, and long-term returns.
At Maxim Lending, our mission is to educate borrowers and structure loans that build wealth strategically . Whether it’s an ARM for short-term flexibility or a fixed rate for long-term stability, we’re here to guide you every step of the way.
Brian Jahanbin CEO, Maxim Lending
NMLS#166917 brian@maximlending.net
Over 20 years of experience and more than $2 billion in funded transactions.
