What is a 10/1 ARM and how does it work?

A 10/1 ARM is a type of mortgage that has a fixed rate for the first 10 years and then a variable rate for the remainder of the loan term that adjusts annually. The variable rate on an ARM is based on a benchmark, typically the Secured Overnight Financing Rate (SOFR). The adjustments can mean big changes to how much interest accrues, how much you owe and how much you pay each month. These mortgages have caps, however, so your rate can only go up to a certain limit, outlined in your mortgage terms.

Are there rate caps on 10/1 ARM loans?

Yes, 10/1 ARMs come with rate caps, which limit how much a payment can increase. These caps include: A periodic rate cap: Limits how much the interest rate can change from one period to the next. For a 10/1 ARM, this cap is for every year. A lifetime rate cap: Limits how much the interest rate can rise over the life of the loan. A payment cap: 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.

What are the requirements to get a 10/1 ARM loan?

Adjustable-rate mortgage requirements are similar to those for fixed-rate mortgages, including: 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

How does refinancing a 10/1 ARM work and when is it a good idea?

Many people with ARMs choose to refinance to a fixed-rate loan before their rate adjusts. You can refinance your 10/1 ARM by applying for a new loan either with your current lender or a new one. Comparing offers from multiple lenders can help you find a good deal. Just like when you got your original mortgage, you’ll have to submit documentation, get an appraisal and pay for closing costs when refinancing.

Compare Today's 10/1 ARM Rates

Weekly national mortgage interest rate trends

Current mortgage rates

	10/1 ARM	6.65%
	5/1 ARM	6.14%
	30 year fixed	6.80%

Today's 10/1 ARM loan interest rates

Last year, in 2024, adjustable-rate mortgage rates fluctuated between 6 and 7 percent. Even after the Federal Reserve implemented several rate cuts from September onwards, there was no substantial decrease in rates. Predicting mortgage rates is challenging, yet many experts expect rates to linger above 6 percent through the remainder of 2025 and into 2026.

A 10/1 ARM has a longer introductory fixed-rate period than a 3/1, 5/1 or 7/1 ARM. Because of this, it also typically has a higher rate. Otherwise, a 10/1 ARM functions similarly, except for the fixed-rate time lasting 10 years instead of three, five or seven years. In general, ARM rates are lower than 30-year fixed-rate mortgages, but may not be lower than shorter-term fixed-rate loans. Compare ARM rates to other loan types with the chart below.

National mortgage rates by loan type

Product	Interest Rate	APR
10/1 ARM Rate	7.00%	6.89%
3/1 ARM Rate	5.93%	6.64%
5/1 ARM Rate	6.18%	6.65%
7/1 ARM Rate	6.71%	6.87%
30-Year Fixed Rate	6.88%	6.94%
15-Year Fixed Rate	6.11%	6.20%

Rates as of Tuesday, May 13, 2025 at 6:30 AM

Product	Interest Rate	APR
10/1 ARM Rate	7.18%	6.96%
3/1 ARM Rate	6.22%	6.61%
5/1 ARM Rate	6.35%	6.57%
7/1 ARM Rate	6.89%	6.91%
30-Year Fixed Rate	6.96%	7.02%
15-Year Fixed Rate	6.38%	6.47%

Rates as of Tuesday, May 13, 2025 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.

When is it a good idea to get a 10/1 ARM?

It’s important to think about your financial situation and what your goals are when considering an ARM. Here’s when a 10/1 ARM may be a good idea:

You’re planning on moving within 10 years.
You’re planning to refinance before the 10 years are up.
You expect your income to go up before the ARM adjusts.

Consider these pros and cons when making your decision:

Pros of a 10/1 ARM

Lower introductory rate and monthly payments: A 10/1 ARM can come with a lower initial interest rate than that of a 30-year fixed-rate mortgage, resulting in lower monthly payments for the loan’s fixed period.
Monthly payments might decrease: If rates are lower at the time your ARM adjusts, your monthly payment could fall. However, some ARMs have floor rates to limit how far the rate can decrease.
Good for the short-term: A 10/1 ARM can be an appealing option if you’re unsure how long you’ll be in the home, allowing you enough time to sell or refinance to a fixed rate before your rate adjusts.

Cons of a 10/1 ARM

Monthly payments might go up: The biggest drawback of an ARM is your interest rate going up when your rate adjusts, which can significantly increase your mortgage payment.
You’ll need to plan for rising rates: If you plan to hold onto the loan after the first adjustment, you’ll need to budget for potential 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, unlike with a fixed-rate mortgage. Instead, prepaying will lower your monthly payment more.

How to compare 10/1 ARM rates

Step 1: Strengthen your credit score - Before you start shopping for a mortgage, give your finances a checkup, and improve your credit score if needed.
Step 2: Determine your budget - A 10/1 ARM can have a higher monthly payment once your rate adjusts. You’ll need a good handle on how much house you can afford.
Step 3: Know your mortgage options - Before deciding on a 10/1 ARM loan, research different types of mortgages to make an informed decision.
Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
Step 5: Read lender reviews: Find out what people have to say about a lender before choosing it.
Step 6: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

10/1 ARM loan FAQ

A 10/1 ARM is a type of mortgage that has a fixed rate for the first 10 years and then a variable rate for the remainder of the loan term that adjusts annually. The variable rate on an ARM is based on a benchmark, typically the Secured Overnight Financing Rate (SOFR). The adjustments can mean big changes to how much interest accrues, how much you owe and how much you pay each month. These mortgages have caps, however, so your rate can only go up to a certain limit, outlined in your mortgage terms.
Yes, 10/1 ARMs come with rate caps, which limit how much a payment can increase. These caps include:
- A periodic rate cap: Limits how much the interest rate can change from one period to the next. For a 10/1 ARM, this cap is for every year.
- A lifetime rate cap: Limits how much the interest rate can rise over the life of the loan.
- A payment cap: 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.
Adjustable-rate mortgage requirements are similar to those for fixed-rate mortgages, including:
- 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
Many people with ARMs choose to refinance to a fixed-rate loan before their rate adjusts. You can refinance your 10/1 ARM by applying for a new loan either with your current lender or a new one. Comparing offers from multiple lenders can help you find a good deal. 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 10/1 ARM loan resources

Meet our Bankrate experts

Written by: Andrew Dehan, 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 10/1 ARM rates