Best 7 1 Arm Rates 5 5 Adjustable Rate Mortgage CNN – Mortgage rates are lower than they’ve been in years, causing a tsunami of refinancing. The average rate on a 30-year fixed rate mortgage fell to 3.93% last week for loans of $484,000 or less -.
For example, a common adjustable-rate mortgage is a 5/1 ARM with a 2/6 cap. What this means is that the rate is fixed for the first five years, and then the interest.
· The 5/1 Adjustable Rate Mortgage (ARM) Rate is the interest rate that US home-buyers would pay if they were to take out a loan with a 5 year fixed rate followed by an adjustable rate for the balance of the loan period.
Adjustable Rate Mortgage Refinance 5 Year Adjustable Rate Mortgage Rates Adjustable Definition The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years. The interest rate then may change (adjust) each year thereafter once the initial fixed period ends. For example, with a 5/1 ARM loan for a 30-year term, your interest rate would be fixed for the initial 5 years.