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7-year ARM rate chart
Adjust the graph below to see 7-year ARM rate trends tailored to your loan program, credit score, down payment and location.
Compare current 7-year ARM rates by loan type
The table below is updated daily with 7-year ARM rates for the most common types of home loans. Compare week-over-week changes to current adjustable-rate mortgages and annual percentage rates (APR). The APR includes both the interest rate and lender fees for a more realistic value comparison.
Conforming loans
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Government loans
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Jumbo loans
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Frequently asked questions about 7-year ARM
What is a 7-year ARM?
A 7-year ARM (adjustable-rate mortgage) is a home loan with a 30-year term that offers a fixed interest rate for the first 7 years then a variable interest rate for the remainder of the loan term.
7-year ARM rates explained
Rates on 7-year ARM loans are represented by two numbers separated by a slash, such as 7/6 ARM. The first number tells you how long the interest rate will stay the same (i.e. 7 years), and the second number following the slash represents how often the rate will be adjusted after the fixed period (i.e. every 6 months).
When rates adjust after the initial fixed period, the interest rate changes based on a published index rate, plus a margin that is set by your lender to determine the new interest rate. The lender will then recalculate your monthly mortgage payment based on the new interest rate and balance without changing the term, so your payments may go up or down accordingly.
Most ARM loans have a maximum rate cap that limits the amount 7-year ARM rates can increase each adjustment period, as well as a lifetime cap over the loan term. You can find all the rate details about your 7-year ARM in the Loan Estimate your lender provides once you've applied for the mortgage.
What is a 7/1 ARM?
A 7/1 ARM used to be a type of 7-year adjustable-rate mortgage where the interest rate was fixed for the first 7 years and then adjusted annually for the remainder of its term. The now retired 7/1 ARM loans were based on a benchmark known as LIBOR (London Inter-Bank Offered Rate) that will cease to be published by 2023. Financial institutions have fully transitioned to a new benchmark interest rate known as SOFR (Secured Overnight Financing Rate), meaning all 7/1 ARM loans have been replaced by 7/6 ARMs.
7/1 ARM vs 7/6 ARM
A 7/6 ARM is a type of 7-year adjustable-rate mortgage. Unlike a 7/1 ARM, rates on a 7/6 ARM readjust every 6 months after the first 7-year fixed period rather than annually. While both a 7/1 ARM and 7/6 ARM have a rate cap that limits how much the interest rate can change with each adjustment, 7/6 ARMs are limited to going up or down a maximum of one percentage point when they adjust every 6 months whereas 7/1 ARMs could go up or down a maximum of two percentage points each annual adjustment. That's because 7/6 ARMs are based on the new SOFR benchmark that replaced LIBOR and differs when it comes to margins, rate adjustment periods and interest rate caps.
7-year ARM rates vs 30-year fixed-rate mortgages
A 7-year ARM generally offers a fixed interest rate that is lower than a 30-year fixed-rate mortgage for the first 7 years of the loan term. The lower initial rate may save you thousands of dollars in interest over the first 7 years. However, after the fixed period, interest rates on 7-year ARMs are likely to increase whereas the rate will stay the same for 30-year fixed-rate mortgages.
Compare a 30-year fixed-rate mortgage with a 3.5% interest rate and a 7-year ARM with an initial interest rate of 3.0% on a $300,000 home with a 20% down payment. In the first 7 years, the borrower would save about $66 on their monthly mortgage payments with a 7-year ARM and almost $6,000 over the first 7 years of the loan. The initial savings with a 7-year ARM could be used toward the principal to pay down the loan balance and build equity faster.
When should you consider a 7-year ARM?
The most ideal time to consider a 7-year ARM is when the APR is lower than a 30-year fixed-rate mortgage. Because 7-year ARMs have a low introductory rate, some home shoppers may choose this loan program with the intention to sell the house or refinance the mortgage before the fixed rate period ends in hopes that the value of the house increases within the first 7 years. However, not knowing the future can present its own set of risks like:
- Market values going down, impacting your ability to sell
- Interest rates increasing, costing you more to refinance
- Financial hardships, like a job loss or unexpected illness, affecting your ability to cover the monthly payment increase
Before committing to a 7-year ARM, make sure you're comfortable with the new monthly payment amount at the maximum interest rate. Defaulting on your home loan can severely impact your credit, and refinancing a 7-year ARM to a fixed-rate mortgage comes with fees that may end up costing you more than your initial savings.
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