Mortgage Rates for a 5-Year ARM in 2026

Mortgage rates for a 5-year ARM: the quick answer

A 5-year ARM is an adjustable-rate mortgage with an introductory interest rate that is generally fixed for the first five years. After that, the rate can change based on the loan's contract. The most common labels are 5/1 ARM and 5/6 ARM.

The first number tells you how long the initial rate lasts. The second tells you how often it can adjust afterward: a 5/1 ARM generally adjusts once a year after year five, while a 5/6 ARM generally adjusts every six months. CFPB guidance emphasizes that you should verify the exact adjustment schedule in the loan documents rather than relying only on the product name.

There is no single universal 5-year ARM rate. Your quote can depend on the lender, credit profile, loan amount, down payment, property type, occupancy, points, market conditions and other underwriting factors.

What are 5/1 ARM mortgage rates right now?

ARM pricing changes frequently, so any published number is only a market snapshot. On September 27, 2026, Bankrate showed a national average 5/1 ARM interest rate of 7.00%, compared with 7.18% for a 30-year fixed mortgage in the same rate table. Those figures are not a quote and may differ from the offers available to you.

When comparing offers, look at the interest rate, APR, points, lender credits, closing costs and projected payments. A slightly lower ARM rate can be offset by higher upfront costs, and an ARM with the same initial rate can have very different caps or margins from another lender's ARM.

5/1 ARM vs. 5/6 ARM: what does the second number mean?

Both products usually keep the introductory rate fixed for five years. The difference is what happens next. A 5/1 ARM typically adjusts once every 12 months after the initial period. A 5/6 ARM typically adjusts every six months.

Adjustment frequency can affect how quickly market changes flow through to your mortgage. It does not tell you how large each adjustment can be—that is governed by the loan's rate caps.

Product structures vary, so use the Loan Estimate and ARM disclosure for the loan you are actually considering.

How the rate changes after year five: index + margin

After the initial fixed period, an ARM's rate is generally based on two pieces: an index and a margin. The index moves with broader market conditions. The margin is set by the lender in the loan agreement and generally does not change after closing.

For example, if the index were 5.25% at a reset and the margin were 2.75%, the fully indexed rate would be 8.00% before applying contractual caps. The rate you actually receive could be lower or higher depending on those caps and the exact index value used on the reset date.

The CFPB specifically recommends paying attention to the margin when shopping because margins can differ across lenders. Two loans with the same introductory rate can behave differently later.

What rate caps mean on a 5-year ARM

ARM caps limit how much the interest rate can change. The CFPB describes three common types:

• Initial adjustment cap: limits the first change after the five-year fixed period ends.
• Subsequent adjustment cap: limits later changes from one adjustment period to the next.
• Lifetime cap: limits the total increase over the life of the loan.

A cap structure might be written as something like 2/2/5, but you should never assume that structure. The exact numbers vary by product. Ask the lender to show the highest possible rate and highest projected payment under the contract.

5-year ARM payment example on a $400,000 mortgage

Suppose a borrower takes a $400,000, 30-year 5/1 ARM with a 7.00% introductory rate. The initial principal-and-interest payment would be about $2,661 per month. After 60 scheduled payments, the remaining balance would be roughly $376,526.

If the loan then reset and the new rate were different, the payment would be recalculated over the remaining 25 years. The table below illustrates the effect. It is not a forecast and does not include taxes, insurance, mortgage insurance or HOA dues.

The actual reset depends on the loan's index, margin, caps and remaining balance. Your servicer will use the contractual terms—not a generic market average—to calculate the new rate and payment.

5-year ARM vs. 30-year fixed: what should you compare?

A 5-year ARM can make sense when the initial rate is meaningfully lower and the borrower can tolerate payment uncertainty. A fixed-rate mortgage gives up that reset risk because the interest rate does not change during the loan term.

Compare more than the payment in month one. Review the APR, points, lender credits, closing costs, adjustment schedule, index, margin, caps and highest projected payment. If the ARM saves only a small amount each month, the trade-off may be less compelling than it appears from the advertised rate alone.

Checklist for comparing mortgage rates on a 5-year ARM

• Ask whether the loan is a 5/1, 5/6 or another adjustment structure.
• Compare the initial interest rate and APR using the same loan amount and down payment.
• Check points, lender credits and total closing costs.
• Identify the index used after the initial period.
• Write down the lender margin.
• Review the initial, subsequent and lifetime adjustment caps.
• Check any rate floor and the maximum interest rate.
• Review the projected payments on the Loan Estimate.
• Ask what the payment could be at the first reset and at the maximum permitted rate.
• Compare the same scenario with a 30-year fixed mortgage.
• Do not assume a future refinance will be available or inexpensive.

Sources and methodology

This guide uses the Consumer Financial Protection Bureau's mortgage key terms for the definition of a 5/1 ARM, the CFPB's explanations of index and margin and ARM rate caps, and its ARM consumer resources.

The market-rate snapshot uses Bankrate's national ARM rate table as displayed for September 27, 2026. Market averages are not personalized offers and can change daily. Payment examples were calculated using standard fully amortizing mortgage formulas and are for educational comparison only.