Compare 5/1 ARM Rates Today | Bankrate (2024)

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Compare 5/1 ARM Rates Today | Bankrate (1)Written by

Andrew Dehan

Compare 5/1 ARM Rates Today | Bankrate (2)Edited by

Troy Segal

Compare 5/1 ARM Rates Today | Bankrate (3)Edited by

Troy Segal

On Wednesday, July 10, 2024,the national average 5/1 ARM APR is 7.82%. The average 10/1 ARM APR is 7.91%, according to Bankrate's latest survey of the... nation's largest mortgage lenders.

On this page

  • Weekly national mortgage interest rate trends
  • Today’s 5/1 ARM rates
  • How to get the right 5/1 ARM loan for you
  • 5/1 ARM loan requirements
  • When is it a good idea to get a 5/1 ARM?
  • Compare mortgage lenders side by side
  • 5/1 ARM loan FAQ
  • Additional 5/1 ARM loan resources

How to compare mortgage offers

Comparison-shopping for a mortgage isn’t just smart — it’s crucial to get the most competitive rate and mortgage terms. Even a 0.1 difference in an interest rate can save thousands of dollars over the life of the loan. Bankrate’s mortgage rate table allows you to easily compare personalized rates from our marketplace of trusted lenders. Here is how to compare mortgage offers on Bankrate in 3 easy steps:

  1. Determine the right type of mortgage: There are a lot of options in home loans, so it’s important to research and decide what type of mortgage might be best for you, given your finances and your short- and long-term goals.

  2. Gather necessary documentation: In order for lenders to give you the most accurate quote, you will need to provide paperwork once connected with a lender that verifies your income, assets, debts and employment.

  3. Compare mortgage offers online: Bankrate helps you easily compare mortgage offers by using our mortgage rate table below. Our rate table filters allow you to plug in general information about your finances and location to receive tailored offers. As you weigh offers, be sure to consider APRs, lender fees and closing costs to ensure you’re making accurate comparisons — and maximizing your savings potential.

The Bankrate Promise

Bankrate has helped people make smarter financial decisions for 40+ years. Our mortgage rate tables allow users to easily compare offers from trusted lenders and get personalized quotes in under 2 minutes. While our priority is editorial integrity, these pages may contain references to products from our partners. Here is how we make money.

On This Page

Weekly national mortgage interest rate trends

Current mortgage rates

5/1 ARM6.58%
15 year fixed6.55%
30 year fixed7.06%

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 5/1 adjustable rate mortgages (ARMs), along with others. 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.

ProductInterest RateAPR
5/1 ARM6.52%7.82%
7/1 ARM6.71%7.89%
10/1 ARM6.87%7.91%

Rates as of Wednesday, July 10, 2024 at 6:30 AM

ProductInterest RateAPR
5/1 ARM6.36%7.68%
7/1 ARM6.67%7.71%
10/1 ARM6.86%7.87%

Rates as of Wednesday, July 10, 2024 at 6:30 AM

During the introductory period, ARM rates are typically lower than their fixed-rate counterparts. The following table compares ARM rates to rates on other types of loans.

Compare 5/1 ARM rates versus other loan types

ProductInterest RateAPR
5-1 ARM6.52%7.82%
30-Year Fixed Rate6.98%7.03%
15-Year Fixed Rate6.48%6.55%
30-Year Fixed Rate FHA7.02%7.06%
30-Year Fixed Rate VA7.13%7.17%
30-Year Fixed Rate Jumbo7.08%7.13%

Rates as of Wednesday, July 10, 2024 at 6:30 AM

ProductInterest RateAPR
5-1 ARM6.36%7.68%
30-Year Fixed Rate6.98%7.03%
15-Year Fixed Rate6.51%6.58%
30-Year Fixed Rate FHA7.11%7.15%
30-Year Fixed Rate VA7.71%7.74%
30-Year Fixed Rate Jumbo7.07%7.12%

Rates as of Wednesday, July 10, 2024 at 6:30 AM

How to get the right 5/1 ARM loan for you

  • Step 1: Strengthen your finances - Before applying for a 5/1 ARM, work to improve your finances if needed. A better credit score, lower debt-to-income (DTI) ratio and higher down payment will result in a more favorable interest rate.
  • Step 2: Set a budget - You’ll need to know how much house you can afford before applying for a 5/1 ARM. Using an adjustable-rate calculator can help you determine how your mortgage payment could change when your rate adjusts.
  • Step 3: Compare offers from several lenders - Rate-shop with at least three different banks or mortgage companies to find the best 5/1 ARM offer. Along with comparing rates, consider fees and the rate cap structure of the loan.

5/1 ARM loan requirements

To qualify for a conventional 5/1 ARM, you’ll generally need to meet these requirements:

  • A minimum credit score of 620
  • A debt-to-income (DTI) ratio of no more than 45 percent
  • A minimum down payment of 5 percent

With 5/1 ARMs, mortgage lenders take into account your ability to make a higher monthly payment if interest rates rise. This can make them more difficult to qualify for than a fixed-rate loan for the same amount.

When is it a good idea to get a 5/1 ARM?

There are two reasons why a 5/1 ARM can be a good choice for you:

  • You can get a sizably lower APR on the 5/1 ARM than with a 30-year fixed-rate mortgage
  • You plan to move or refinance within five years of closing on the loan — before the rate increases

Depending on your timeline, other ARMs like a 3/1, 7/1 or 10/1 ARM might be more ideal. Let’s break down the pros and cons of 5/1 ARMs further.

Pros

  • A smaller monthly payment at the start: 5/1 ARMs typically have a lower interest rate than their fixed-rate counterparts during their five-year intro period. This can free up cash to go elsewhere.
  • Build your savings and investments: With added room in your budget during the five-year intro period, you could take the extra cash and use it to build your savings, retirement fund or invest it.
  • Potential for big savings if you’re moving/refinancing: If you’re planning to move or refinance to a lower rate within five years, a 5/1 ARM can save you big money over going with a 30-year fixed-rate. Just have a plan to end the mortgage before the rate adjusts upward.

Cons

  • Higher risk: If you’re not moving or refinancing within five years, you risk your rate adjusting upward. Depending on the market and the rate caps on your loan, your monthly payment could become much higher.
  • Harder to budget for: With a 5/1 ARM, you’ll only have a set payment for the first five years. After that, your mortgage payment will change every year depending on the current state of interest rates. This can make it harder to plan for the future.
  • Harder to pay off early: Because of how ARM interest rates are calculated, paying extra on your loan won’t drastically shorten your loan term like it would with a fixed-rate loan. It will lower future monthly payments, though.

Lender compare

Compare mortgage lenders side by side

Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.

Compare 5/1 ARM Rates Today | Bankrate (4)

Garden State Home Loans

NMLS: 473163

|

State License: MB-473163

3.6

Rating: 3.6 stars out of 5

Bankrate Score

Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.

Recent Customer Reviews

Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.

Rating: 4.98 stars out of 5

5.0

563reviews

Read full lender review

Compare 5/1 ARM Rates Today | Bankrate (5)

Homefinity

NMLS: 2289

|

State License: 4965

4.5

Rating: 4.5 stars out of 5

Bankrate Score

Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.

Recent Customer Reviews

Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.

Rating: 4.94 stars out of 5

4.9

1064reviews

Read full lender review

5/1 ARM loan FAQ

Additional 5/1 ARM loan resources

  • ARM loan calculator
  • Fixed vs. adjustable-rate mortgages
  • Guide to FHA ARMs
  • Refinancing an ARM to a fixed-rate mortgage

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by:Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth.

Read more from Troy Segal

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Compare 5/1 ARM Rates Today | Bankrate (2024)
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