Current ARM refinance rates

Written by Jeff Ostrowski

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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 3.810% 4.780%
7/1 ARM 4.750% 4.390%
10/1 ARM 4.840% 4.540%

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:

Pros:

  • 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

Cons:

  • 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

Learn more about specific loan type rates
Loan Type Purchase Rates Refinance Rates
The table above links out to loan-specific content to help you learn more about rates by loan type.
30-Year Loan 30-Year Mortgage Rates 30-Year Refinance Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Refinance Rates
15-Year Loan 15-Year Mortgage Rates 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Mortgage Rates FHA Refinance Rates
30-Year FHA Loan 30-Year FHA Loan Rates 30-Year FHA Refinance Rates
VA Loan VA Mortgage Rates VA Refinance Rates
ARM Loan ARM Mortgage Rates ARM Refinance Rates
3/1 ARM 3/1 ARM Rates 3/1 Refinance Rates
5/1 ARM 5/1 ARM Rates 5/1 Refinance Rates
7/1 ARM 7/1 ARM Rates 7/1 Refinance Rates
10/1 ARM 10/1 ARM Rates 10/1 Refinance Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refinance Rates
30-Year Jumbo Loan 30-Year Jumbo Loan Rates 30-Year Jumbo Refinance Rates