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Current ARM refinance rates

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Current ARM refinance rates

Refinance rates change all the time, driven by factors like the economy, Treasury bond rates and demand. Lenders nationwide provide weekday mortgage rates to our comprehensive national survey of the most current rates available. The interest rate table below is updated daily. Use these as a guide to what's available, but keep in mind your rate may vary depending on your qualifications and the lender you choose.

Product Interest Rate APR
5/1 ARM 5.97% 7.73%
7/1 ARM 6.71% 7.73%
10/1 ARM 7.10% 7.65%

Rates as of Sunday, June 04, 2023 at 6:30 AM

What is an adjustable-rate mortgage refinance loan?

In contrast to a fixed-rate loan, which is a more common mortgage offering, the interest rate on an adjustable-rate mortgage (ARM) changes over time. For a 7/1 ARM, for instance, the introductory rate stays the same for seven years. Then the rate can adjust annually. The standard terms allow the rate on an ARM to rise as much as 2 percentage points at a time. As the interest rate changes, so will your monthly payment.

Should I get a fixed-rate refinance loan or an ARM refinance loan?

ARMs are a smart choice when mortgage rates are high and expected to drop, but in the current turbulent rate environment, they’re not the best choice for most borrowers. They can make sense if you’re planning to move or refinance before the adjustments begin, however.

>>Read more about whether you should refinance your ARM into a fixed-rate mortgage.

ARM refinance pros and cons

As with most financial products, 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

ARM refinance loan 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