Five Year Arm Rates

Current Low Mortgage Rates Mortgage rates improved again today, bringing them back to the lowest levels seen since last Thursday morning. Starting last Wednesday, we saw a fairly fast rate spike through the end of the week.

5-Year ARM Mortgage Rates. A five year mortgage, sometimes called a 5/1 ARM, is designed to give you the stability of fixed payments during the first 5 years of the loan, but also allows you to qualify at and pay at a lower rate of interest for the first five years.

How 5/1 ARM Rates Stack Up Against Other Mortgage Rates. A 5/1 ARM at 3.55% interest for the same home price and down payment totals to about $994 per month for principal and interest. That equals a difference of $56 per month, which may not seem that dramatic, but per year that means a savings of $672.

5-Year Adjustable Rate Mortgage Because the interest rate may only be adjusted every five years, this product offers additional protection against rising rates 1 . The rate may not change by more than 2% every five years or 6% over the life of the loan.

15 Year Mortgage Loan Interest Rates Since jumbos provide more risk to the bank, they often come with higher interest rates. 15-year jumbos typically come with an interest rate of 0.5% to 1% above a traditional 15 year loan. What Affects Interest Rates. Like all mortgage products, the best time to get a 15-year is when interest rates and fees are low.

The 15-year fixed-rate average rose to 3.06 percent with an average 0.5 point. It was 3.03 percent a week ago and 3.97.

For example, a 5/1 ARM has an initial interest rate that remains fixed for the first five years and then adjusts every one year afterward. A 3/1, 7/1 or 10/1 ARM works the same way, adjusting annually after the initial rate period (three, seven or 10 years, respectively) ends.

How to Get an Adjustable Rate Mortgage (ARM) | Ask a Lender 5/1 ARM explained. With a 5/1 ARM, the interest rate does not begin changing based on the index immediately. Instead, the interest rate on a 5 year ARM is fixed for the first five years of the loan. After five years, the interest rate can change annually for the next 25 years until the loan is paid off.

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.

The 15-year fixed-rate average also ticked up to 3.18 percent with an average 0.5 point. It was 3.16 percent a week ago and 3.99 percent a year ago. The five-year adjustable rate average rose to 3.45.

A year ago at this time, the 15-year FRM averaged 3.98 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM).