Rate Mortgages > 5/1
5 Year ARM Rates -
5 year adjustable rate mortgages
you are planning on only being in your home for five
years or less, then a 5 year ARM might be the perfect
choice for your home financing needs. 5 year adjustable
rate mortgages stay fixed for the first five years
before adjusting up or down according to a designated
index. These programs often carry a lower rate for
the introductory perdiod than a traditional 30 year
fixed rate mortgage (although this is not always the
case). Give the lenders, brokers, and banks in the
survey a call today to find out mortgage about their
5/1 ARM products.
Some 5 Year Adjustable Rate Mortgage Highlights
- Low introductory rate for the first five years
of the mortgage
- 5 year ARM programs possibly a good choice for
people planning on being in their homes for 3-7
- Many have 5/2/5 caps which means the initial rate
cannot go up or down more than 2% at the first adjustment
period, 2% at any adjustment thereafter, and 5%
total at any point during the 30 year term.
- May be available for primary residences, second
homes, and investment properties.
- A minimum 620 credit score is typically required.
Ask a lender or broker to their program guidelines.
5/1 ARM vs. a 30 Year Mortgage
for 30 year mortgages may be lower than 5/1 year
ARMs under certain market conditions. Be sure to ask
your mortgage professional to compare the programs
to make sure that the added risk of an adjustable
rate mortgage is worth the reward of potential savings.
Find 5 year ARM rates for your next purchase or mortgage
refinance using the rate survey below. Contact the
various mortgage companies for more information including
details on the loans' caps, margins, and the indexes
that the loans are tied to. You can use the calculator
on the right to determine principal and interest payments
for the introductory 60 month period. Keep in mind
that rates will likely change after the first five
years and will continue to adjust in set intervals.
Most ARMs have 30 year amortization schedules so set
the calculator to 30 years. You'll want to verify
all details of the loans with the various mortgage
companies you speak to.
Find out more about some of our adjustable rate