Compare 5/1 ARM rates today

5/1 ARMs differ from other ARM terms mostly in the length of the initial rate period and how frequently the rate adjusts. For example, a 5/1 ARM has an introductory rate for the first five years, with the rate adjusting annually (ie, once a year) for the remainder of the loan. A 7/6 ARM, however, has an initial rate period of seven years, then adjusts biannually (ie, every six months).

There are differences in interest rates, too: Typically, the shorter the initial period, the lower the rate. So, a 5/1 ARM will likely have a rate lower than a 7/1 or 10/1 ARM, but not as low as a 3/1 ARM.

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• National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
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You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.

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A 5/1 ARM is a 30-year mortgage that has a low, fixed introductory rate for the first five years. After this fixed period, the rate becomes variable, fluctuating once per year. It can go either up or down, depending on market conditions, which will either raise or lower your monthly payment accordingly. The variable rate is tied to a benchmark, typically the Secured Overnight Financing Rate (SOFR). This rate moves based on what’s happening in the economy in the U.S. and abroad, and how the Federal Reserve and other central banks are responding to those trends. Along with the benchmark rate, the rate on an ARM changes according to the loan's rate cap structure, which limits how much the rate can increase or decrease.

Yes, a 5/1 ARM typically has rate caps that set limits on changes in the rate. These often include:

• An initial rate cap, which limits how much the interest rate can change after the introductory period
• A periodic rate cap, which limits how much the interest rate can change from one year to the next
• A lifetime rate cap, which limits how much the interest rate can rise over the life of the loan
• A payment cap, which limits the amount the monthly payment can rise over the life of the loan in dollars, rather than how much the rate can change in percentage points

Yes. Refinancing an ARM works like refinancing any other mortgage. There are a few main reasons you might want to refinance your ARM:

• To lower your rate and/or change your loan term length
• To change the rate and/or terms before the first rate adjustment
• To borrow against your home equity
• To switch from the ARM to a fixed-rate mortgage

Just remember that refinancing isn’t free: You’ll have to pay closing costs, either upfront or financed with the new mortgage.