What does a 7-year ARM mean?

This is a mortgage that will have a fixed interest rate for seven years , then the interest rate will adjust annually for the remaining 23 years of the loan.

Is a 7/1 ARM a good idea?

A 7/1 ARM can be a good idea if you plan to exit the loan, either through a sale or refinance, or anticipate having additional money to pay a higher mortgage note if your interest rate increases.

What are 7/1 ARM rates today?

The 7/1 ARM floating interest rates are based on the margin (outlined in your loan agreement) and an index, which changes daily .

How much is a 7-year ARM?

The monthly payments on a 7/1 ARM are based on principal, interest, taxes, and insurance. When the rate resets at seven years, the floating interest rates are based on the margin (outlined in your loan agreement) and an index, which changes daily.

Aja McClanahan

Contributing Writer

Aja McClanahan is a writer and licensed real estate agent that covers personal finance and a number of related topics. Her work and personal story of paying down over $120,000 in debt have been featured in publications around the web, including sites like Money.com, CreditCards.com, Business Insider, Inc., Experian and many others.