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5 Year ARM Rates - 5 year adjustable rate mortgages

If 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 years.
• 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

Rates 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.

 

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Find out more about some of our adjustable rate mortgage programs:

• 10 Year
  
• 7 Year
  
• 3 Year
  
• 2 Year
  
• 1 Year