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Current 7/1 arm rates

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Today's 7/1 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
7/1 ARM 5.93% 6.64%
5/1 ARM 5.44% 7.43%
10/1 ARM 6.13% 6.69%

Rates as of Tuesday, February 07, 2023 at 6:30 AM

So you’re considering an adjustable-rate mortgage. While they lost some popularity after the Great Recession, and are seeing some serious competition from fixed-rate mortgages these days thanks to current low interest rates, they could still be the right loan product for some people.

What is a 7/1 ARM loan?

It all comes down to the terminology. With adjustable-rate mortgages, the numbers dictate the terms. The number before the slash is the period that your interest rate is fixed, and the number after the slash is how often the interest rate changes after that. So, 7/1 means your rate is fixed for the first seven years, and then adjusts annually (every year) after that.

How does a 7/1 ARM work?

Adjustable-rate mortgages tend to start off with lower interest rates than their fixed-rate counterparts, so they can enable homeowners to qualify for a bigger mortgage because the payments will be less, at least to start out. As noted above, after seven years, a 7/1 ARM will begin to see annual adjustments to the interest rate, and that can mean big changes to how much interest accrues, how much you owe, and how much you have to pay every month.

>>Read more about choosing between a ARM and a fixed-rate mortgage

When should you consider a 7/1 ARM?

Adjustable-rate mortgages are best for people who are only planning to hold them for the initial term. So, if you’re looking to move within seven years, or know you’ll be able to refinance to lock in your interest rate in that time, a 7/1 ARM could be the right mortgage for you.

>>Use Bankrate's ARM vs. fixed-rate mortgage calculator to see which type of mortgage works best for you

Learn more about adjustable-rate mortgages

Written by: Zach Wichter, mortgage reporter for Bankrate

Zach Wichter is a mortgage reporter at Bankrate. He previously worked on the Business desk at The New York Times where he won a Loeb Award for breaking news, and covered aviation for The Points Guy.

Read more from Zach Wichter