Compare 5/1 ARM rates today

Today's 5/1 ARM loan rates

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for 5/1 adjustable rate mortgages (ARMs), along with others. The interest rate table below is updated daily to give you the most current purchase rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.

During the introductory period, ARM rates are typically lower than their fixed-rate counterparts. The following table compares ARM rates to rates on other types of loans.

Compare 5/1 ARM rates versus other loan types 

How to get the right 5/1 ARM loan for you 

• Step 1: Strengthen your finances - Before applying for a 5/1 ARM, work to improve your finances if needed. A better credit score, lower debt-to-income (DTI) ratio and higher down payment will result in a more favorable interest rate.
• Step 2: Set a budget - You’ll need to know how much house you can afford before applying for a 5/1 ARM. Using an adjustable-rate calculator can help you determine how your mortgage payment could change when your rate adjusts.
• Step 3: Compare offers from several lenders - Rate-shop with at least three different banks or mortgage companies to find the best 5/1 ARM offer. Along with comparing rates, consider fees and the rate cap structure of the loan.

5/1 ARM loan requirements 

To qualify for a conventional 5/1 ARM, you’ll generally need to meet these requirements:

• A minimum credit score of 620
• A debt-to-income (DTI) ratio of no more than 45 percent
• A minimum down payment of 5 percent

With 5/1 ARMs, mortgage lenders take into account your ability to make a higher monthly payment if interest rates rise. This can make them more difficult to qualify for than a fixed-rate loan for the same amount.

When is it a good idea to get a 5/1 ARM?

There are two reasons why a 5/1 ARM can be a good choice for you:

• You can get a sizably lower APR on the 5/1 ARM than with a 30-year fixed-rate mortgage
• You plan to move or refinance within five years of closing on the loan — before the rate increases

Depending on your timeline, other ARMs like a 3/1, 7/1 or 10/1 ARM might be more ideal. Let’s break down the pros and cons of 5/1 ARMs further.

5/1 ARM loan FAQ

Additional 5/1 ARM loan resources

• ARM loan calculator
• Fixed vs. adjustable-rate mortgages
• Guide to FHA ARMs
• Refinancing an ARM to a fixed-rate mortgage

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth. 

Read more from Troy Segal