Best 7 Year Arm Mortgage Rates. That low initial interest rate can make the 7 1 arm an affordable mortgage option for homebuyers. Compared to the standard fixed rate mortgages like the 15 year fixed rate mortgage and the 30 year fixed rate mortgage 7 1 arms traditionally have lower interest rates at least within the first seven months of the loan term. Arm interest rates and payments are subject to increase after the initial fixed rate period 5 years for a 5 1 arm 7 years for a 7 1 arm and 10.
In a 5 1 arm the fixed period is 5 years and in a 7 1 or 10 1 it is 7 and 10 years respectively. An adjustable rate mortgage arm starts with a rate for a fixed period.
10 1 arm the first 10 years have a fixed rate followed by a floating rate for the remainder of the loan.
The arm loan may include an initial fixed rate period that is typically 3 to 10 years. In a 5 1 arm the fixed period is 5 years and in a 7 1 or 10 1 it is 7 and 10 years respectively. Estimated monthly payments shown include principal interest and if applicable any required mortgage insurance. The 7 refers to the number.
