5/1 Adjustable Mortgage Rates (ARM)

editor@creditsesame.com'

This is an adjustable rate mortgage on which you make both interest and principal payments; the initial rate you pay is fixed for 5 years. After 5 years a new rate equal to the level of the LIBOR1Y index plus 2.25% and a new monthly payment are calculated. After the first reset, a new rate and payment are calculated annually.

Advantages of 5/1 ARM Mortgage Rates

Typically has a lower rate and payment compared to a traditional 30yr fixed mortgage during the initial 5 year fixed period.

Disadvantages of 5/1 ARM Mortgage Rates

Once the fixed term expires the mortgage rate and payment could move significantly higher.

Get current 5/1 mortgage rates fit for your budget and credit

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5/1 Adjustable Refinance Rate Arms by State


Find refinance mortgage rates in your state.

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Published December 5, 2011 Updated: December 30, 2012
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