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The adjustable-rate mortgage (ARM) share of activity increased to 6.4% of. The average contract interest rate for 5/1 ARMs decreased to 3.35% from 3.43%, with points increasing to 0.41 from 0.35.

When mortgage rates are rising, it may seem crazy to consider a 5/1 ARM ( adjustable rate mortgage) or a 15-year fixed-rate loan. After all.

An adjustable-rate mortgage is a home loan with a fixed interest rate upfront, followed by a rate adjustment after that initial period. The primary difference between a 5/1 and 5/5 ARM is that the 5/1 arm adjusts every year after the five-year lock period, whereas a 5/5 arm adjusts every five years.

At the time of writing, the lowest rate advertised on a major mortgage site for a 5/1 ARM was about 3.2% compared to a rate of 3.9% for a.

How a 5/1 ARM Mortgage Works. The term 5/1 ARM means that you will get five years of a fixed interest rate, followed by one-year increments of adjustable rates. This means that for the first five years of the mortgage, you are going to have the same interest rate and the same monthly mortgage payment.

A 5/1 adjustable-rate mortgage, or ARM, is a mortgage loan that has a fixed rate for the first five years, and then switches to an adjustable-rate mortgage for the.

A 5/1 adjustable-rate mortgage, or ARM, is a mortgage loan that has a fixed rate for the first five years, and then switches to an adjustable-rate mortgage for the remainder of its term. Once a year after that initial five-year period, the interest rate can be adjusted up or down, depending on a number of factors.

What is a 5/1 ARM? What does the "5" and "1" mean? For instance, a 5/1 ARM has a fixed rate for five years, and then its rate would reset once a year for the remaining 25 years of its term.

With an adjustable rate mortgage (ARM), your interest rate may change periodically. Compare adjustable-rate mortgage options and rates, including 5/1, 7/1 and 10/1 ARMs available from Bank of America.

If you've decided to get an adjustable-rate mortgage, the next step is to choose a term. The 5/1 ARM and 10/1 ARM are among the most.

One common adjustable-rate mortgage is known as a 5/1 ARM. It has an initial fixed rate for five years before the interest rate starts adjusting. The rate can change every year for the remaining life of the loan.