The 5/1 adjustable-rate mortgage (arm) rate is 3.87 percent with an APR of 6.98 percent. Today’s Mortgage Interest Rates for Purchase

 · DEFINITION of ‘Adjustable-Rate Mortgage – ARM’. An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly.

Adjustable-Rate Mortgage. An adjustable-rate mortgage (ARM) has interest rates that adjust over time. Typically, the starting rate remains fixed for a set number of years, such as three, five, or even as much as 10 years. That initial rate tends to be lower than that of most fixed-rate mortgages.

ARM Home Loan We’re here to break down the adjustable rate mortgage so you can decide if it’s the best loan choice for your home purchase. The Adjustable Rate Mortgage Defined. An adjustable rate mortgage (ARM), sometimes known as a variable-rate mortgage, is a home loan with an interest rate that adjusts over time to reflect market conditions. Once the.

The variations in the interest rate on an adjustable rate mortgage will be determined by one or a combination of indexes, which reflect underlying interest rates in financial markets overall. The adjustable rate will be a combination of the index and a margin, the latter a fixed number such as 2 or 3 percentage points that is added onto the index to get the adjustable rate.

What Is 5 1 Arm Mortgage Means Put simply, the 5/1 ARM is an adjustable-rate mortgage with a 30-year loan term that’s fixed for the first five years and adjustable for the remaining 25 years. So during years one through five, the interest rate never changes. If it starts at 4%, it remains at 4% for 60 months. Nothing to worry about there.

Today’s low rates for adjustable-rate mortgages. An amount paid to the lender, typically at closing, in order to lower the interest rate. Also known as mortgage points or discount points. One point equals one percent of the loan amount (for example, 2 points on a $100,000 mortgage would equal $2,000).

Rates are expressed as annual percentage rate, or APR. The average rate on the 30-year fixed is 11 basis points lower than a week ago. mortgage rates today (apr)

7 1 Arm Why You Should Get An ARM – Tempted? Here are some pointers. mortgage brokers babble on about 5/1 or 7/1 ARMs with 2/2/6 or 5/2/5 caps. ING Direct recently offered a 5/1 ARM for loans up to $750,000, at 2.75%, with a 2/2/6 cap..

And, rates keep going down on 5/1 adjustable-rate mortgages, or ARMs, which are level for five years and then can "adjust" up.

Rate quoted is valid as of the effective date listed on the Adjustable Rate mortgage page. Rates are subject to change at any time. Please call 1-877-647-5137 or visit WebsterBank.com to check the latest rates. rate quoted is a variable rate and will change annually after the initial fixed period.

Compare adjustable-rate mortgage options and rates, including 5/1, 7/1 and 10/1 ARMs available from Bank of America. Skip to main content. Bank of America . Bank of America. Adjustable. Today’s low rates for adjustable-rate mortgages. Rates based on a $200,000 loan in ZIP code 95464.