Compare 5-Year ARM Rates for Feb 3, 2026
Showing rates for $350,000 loan, $70,000 down, 740 credit score. Customize rate options →
Adjustable-Rate Mortgages (ARMs) start with a lower fixed rate for an initial period (typically 5, 7, or 10 years), then adjust annually based on market conditions. The initial rate discount can save thousands in the early years, making ARMs attractive for buyers who don't plan to stay long-term.
Best for buyers planning to move or refinance within 5-7 years, expecting income growth, or confident rates will remain stable. The initial savings can be substantial—often 0.5-1% below fixed rates—but you must be comfortable with payment uncertainty after the fixed period ends.
Advantages
- ✓Lower initial rate than fixed mortgages
- ✓Significant early savings on interest
- ✓Rate caps limit maximum increases
- ✓Rates may decrease if market falls
Considerations
- •Payment uncertainty after fixed period
- •Potential for rate increases at adjustment
- •Complex rate calculations and terms
- •Risk if unable to refinance later