5/1 ARM Mortgage Rates
Compare today's current mortgage and refinance 5 year ARM interest rates
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A 5-year ARM opens up a lot of possibilities for homeowners who are looking to profit from really low interest rates. For professionals who will be changing jobs or know they will be in a location short-term, this allows you to get a big jump in building equity, and the option to refinance in 5 years is still a great feature.
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Start the process for a 5/1 ARM mortgage today
Start the process for either a purchase or refinance 5/1 ARM mortgage and have a licensed loan officer contact you for a custom quote today.
What is a 5/1 ARM mortgage?
Probably the most common ARM term, the 5/1 ARM (short for adjustable rate mortgage) is an adjustable rate loan which includes a 5-year fixed period, followed by a changing interest rate every year (hence the “1” in the designation) until the loan is paid off.
How does a 5/1 ARM mortgage work?
Offering a superior interest rate to most other mortgage options, the 5/1 ARM allows the borrower 5 years to take a big chunk out of the home purchase price before adjusting annually each year afterwards until the loan is paid in full or refinanced.
Is a 5/1 ARM mortgage loan a good idea?
There is some risk in this mortgage, but with risk comes benefits. Like the 7/1 ARM, if you are pretty certain you will be moving–have a significant increase in income—within the initial 5-year period, you can save a ton of money. Once you reach the period with annual interest rate readjustments, you could see higher OR lower interest rates. Remember, you can always refinance if you aren’t comfortable with this arrangement, and you will have gained a lot of equity in your home in the meantime!
Lock in your 5/1 ARM rate today
With a wide variety of financing options a loan officer can help you find and lock in the best 5/1 ARM mortgage rate for purchasing a home or refinancing your existing mortgage. Contact us to get started today!
Mortgage rate questions?
5/1 ARM mortgage rates change daily and are determined by 5 major driving factors which you can control: Property type and use, loan-to-value ratio, your FICO score, and whether you are purchasing or refinancing the mortgage.
Getting the lowest 5/1 ARM jumbo refinance rate depends on 4 main elements: the refinance type (rate/term or cash out), the amount of equity you have in the property, any second mortgages, liens or subordinate financing you already have, and your financial report card.
Jumbo (loan amount >$510,400) 5/1 ARM rates are typically higher than conforming loans. This process should also include comparing loan estimates, having a 740+ FICO score, 60% (or less) loan-to-value, and the property being your primary residence.
Conforming (loan amount <$510,400) 5/1 ARM rates are typically lower than jumbo loans. This process should also include comparing loan estimates, having a 740+ FICO score, 60% (or less) loan-to-value, and the property being your primary residence.