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Current 5/1 ARM rates

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Today's 5/1 ARM loan rates

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans. The interest rate table below is updated daily to give you the most current purchase rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.

Product Interest Rate APR
5/1 ARM 5.42% 7.41%
7/1 ARM 5.73% 7.22%
10/1 ARM 6.17% 7.14%

Rates as of Monday, January 30, 2023 at 6:30 AM

What is a 5/1 ARM loan?

As the name suggests, the interest rate on an adjustable-rate mortgage, or ARM, changes over time. For a five-year ARM, the introductory rate stays the same for five years. The rate can change once a year after the initial fixed period, and the new rate will be pegged to market conditions at the time of the adjustment. Essentially: If rates on new mortgages are lower than your current rate when your adjustment hits, your ARM rate and monthly payment will go down. If rates are higher, your rate and costs will go up.

How does a 5/1 ARM work?

The amortization schedule is the same as for a 30-year mortgage. The interest rate will remain steady for the first five years, and then adjust annually after that. The variable interest rate after the fifth year is determined by a market index. With mortgage rates rising from their pandemic lows, existing ARM holders are likely to see their payments go up if they’re in their adjustment period.

>>Read more about how an ARM loan works.

Pros and cons of a 5/1 ARM

As with most financial products, 5/1 ARMs have their benefits and drawbacks. Here are the key things to know:


  • It has lower rates and payments early in the loan term
  • Borrowers may be able to qualify for a larger mortgage thanks to lower initial payments
  • Borrowers may be able to invest their monthly savings
  • It offers a cheaper way for borrowers who don’t plan on living in one place for very long to buy a house


  • Rates and payments can rise significantly over the life of the loan
  • Some annual caps don’t apply to the initial loan adjustment, making it difficult to swallow that first reset
  • These loans are more complex, so borrowers need to be more active and savvy in managing their accounts

5/1 ARM FAQs

Learn more about adjustable-rate mortgages

Written by: Jeff Ostrowski, senior mortgage reporter for Bankrate

Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal.

Read more from Jeff Ostrowski