How does a 7/1 ARM compare to other ARM terms?

A 7/1 ARM has a longer introductory fixed-rate period — seven years — than a 3/1 or 5/1 ARM, which have fixed periods of three and five years, respectively. Because of this, it also typically has a higher rate, though the rate will be lower than than a 10/1 ARM (10 years). Otherwise, they all function similarly.

Are there rate caps on 7/1 ARM loans?

Yes, 7/1 ARMs come with rate caps, which limit how much a payment can increase. These caps can include: A periodic rate cap, which limits how much the interest rate can change from one period to the next. For a 7/1 ARM, this cap is for every year. 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.

Can you refinance a 7/1 ARM loan?

Yes, it's possible to refinance your 7/1 ARM. Many people with ARMs choose to refinance them to a fixed-rate loan before their rate adjusts. Like shopping for your original mortgage, comparing offers from multiple lenders can help you find a good deal. Also, just like when you got your original mortgage, you’ll have to submit documentation, get an appraisal and pay for closing costs when refinancing.

Current 7/1 ARM rates

Written by

Andrew Dehan,

Edited by

Michele Petry

Updated on Feb 06, 2026

On Friday, February 06, 2026, the national average 7/1 ARM APR is 5.96%. The average 5/1 ARM APR is 5.95%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

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Current 7/1 ARM rates

Use the chart below to compare 7/1 ARM rates to other loan types:

Product	Interest Rate	APR
7/1 ARM Rate	5.89%	5.96%
3/1 ARM Rate	5.31%	6.00%
5/1 ARM Rate	5.49%	5.95%
10/1 ARM Rate	6.04%	6.02%
30-Year Fixed Rate	6.26%	6.33%
15-Year Fixed Rate	5.57%	5.68%

Rates as of Friday, February 06, 2026 at 6:30 AM

Product	Interest Rate	APR
7/1 ARM Rate	6.07%	6.07%
3/1 ARM Rate	5.74%	6.06%
5/1 ARM Rate	6.05%	6.05%
10/1 ARM Rate	6.60%	6.34%
30-Year Fixed Rate	6.57%	6.63%
15-Year Fixed Rate	5.96%	6.05%

Rates as of Friday, February 06, 2026 at 6:30 AM

Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
- 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.
- Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
- “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.

Learn more about how we collect, display and report mortgage rates.

What is a 7/1 ARM loan?

A 7/1 ARM is a type of mortgage with a fixed interest rate for the first seven years of the 30-year term. After that introductory period, the interest rate is variable and will adjust either up or down annually until the term ends.

It’s important to think about your financial situation and what your goals are when considering an ARM loan rather than a more traditional fixed-rate loan. Here are a few instances when a 7/1 ARM may be a good idea:

If you’re planning on moving within the first seven years, before the rate starts fluctuating.
If you’re planning to refinance before those seven years are up.
If you expect your income to go up before the ARM adjusts.

Consider these pros and cons when making your decision:

Pros of a 7/1 ARM

Lower introductory rate and payments: An ARM often comes with a lower initial interest rate than that of a comparable fixed-rate mortgage, giving you lower monthly payments for the loan’s fixed period. That means a borrower could potentially qualify for a bigger mortgage because the payments will be lower, at least to start out.
Good for short-term: An ARM can be appealing to those who feel sure they will sell and move on before the rate adjusts.
Your rate could decrease: If 7-year ARM rates are lower at the time your ARM adjusts, your monthly payment could fall. Note that some ARMs have floor rates to limit how far the rate can decrease.

Cons of a 7/1 ARM

Your rate could increase: On the other hand, if rates are higher when your ARM adjusts, your payments will increase.
You’ll need to plan for rising rates: If you plan to hold onto the loan beyond the fixed introductory period, you’ll need to budget for the possibility of upward adjustments every year.
More complicated to prepay: Because of how ARM interest rates are calculated, paying extra each month won’t significantly shorten your loan term, as it would with a fixed-rate mortgage. Instead, prepaying will affect your monthly payment more.

How does a 7/1 ARM work?

Adjustable-rate mortgages tend to start with lower interest rates than their fixed-rate counterparts. The interest rate on a 7/1 ARM remains fixed for the first seven years, and after that period, the rate adjusts annually (the 1 stands for once per year). That can mean big changes to how much interest accrues, how much you owe and how much you have to pay every month. Your rate can’t spiral out of control, however — ARMs do have caps, so your rate can only go up to a certain limit.

The variable rate on an ARM loan is based on a benchmark, typically the Secured Overnight Financing Rate (SOFR). This rate fluctuates based on factors like what’s happening in the global economy and how the Federal Reserve and other central banks are responding to those trends.

Adjustable-rate mortgages have similar loan requirements to many fixed-rate mortgages. These include:

Credit score: 620 for a conventional loan, 580 for an FHA loan
Debt-to-income (DTI) ratio: 50 percent or less
Down payment: 5 percent for a conventional loan, 3.5 percent for an FHA loan

Find the right 7/1 ARM loan for you

Strengthen your credit score: Before you even start looking for a 7/1 ARM, give your finances a checkup. If your credit score could use some boosting, take some time to improve it — a higher score will get you a better rate.
Determine your budget: A 7/1 ARM can have a high monthly payment. You’ll need a good handle on how much house you can afford.
Know your mortgage options: Before deciding on a 7/1 ARM loan, research other types of mortgages to be sure you're making an informed decision.
Compare rates and terms from several lenders: Rate-shop with at least three different banks or mortgage companies to find the one who can offer you the best deal. Read lender reviews before making your selection, to find out what other customers have to say about the company.

FAQs

A 7/1 ARM has a longer introductory fixed-rate period — seven years — than a 3/1 or 5/1 ARM, which have fixed periods of three and five years, respectively. Because of this, it also typically has a higher rate, though the rate will be lower than than a 10/1 ARM (10 years). Otherwise, they all function similarly.
Yes, 7/1 ARMs come with rate caps, which limit how much a payment can increase. These caps can include:
- A periodic rate cap, which limits how much the interest rate can change from one period to the next. For a 7/1 ARM, this cap is for every year.
- 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, it's possible to refinance your 7/1 ARM. Many people with ARMs choose to refinance them to a fixed-rate loan before their rate adjusts. Like shopping for your original mortgage, comparing offers from multiple lenders can help you find a good deal. Also, just like when you got your original mortgage, you’ll have to submit documentation, get an appraisal and pay for closing costs when refinancing.

Additional 7/1 ARM loan resources

Meet our Bankrate expert

Written by: Andrew Dehan, Senior Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Current 7/1 ARM rates

Current 7/1 ARM rates

How Bankrate collects mortgage rates

What is a 7/1 ARM loan?

Pros of a 7/1 ARM

Cons of a 7/1 ARM

How does a 7/1 ARM work?

Find the right 7/1 ARM loan for you

FAQs

How does a 7/1 ARM compare to other ARM terms?

Are there rate caps on 7/1 ARM loans?

Can you refinance a 7/1 ARM loan?

Additional 7/1 ARM loan resources

Meet our Bankrate expert

Mortgage rates in other states