Should You Consider a 7 Year ARM?

White home in spring time.7 year ARM products can be a great alternative for home loan shoppers who do not need the long term financing of a fixed rate mortgage and do not want to carry the risk of shorter term ARM products. 7 year ARM mortgage rates are usually slightly lower than that of a 30 year fixed rate mortgage but, from time to time, may actually be higher.

Woman research 7 year ARM information on their laptop.

7 Year ARM Program Highlights

  • Low introductory rate for seven years
  • Loan sizes up to $417,000 (jumbo loan sizes $417,000-$3,000,000 may also be available)
  • Many have lifetime cap of 5% above initial rate
  • Available for primary residences, second homes, and possibly for investment properties.

With a 7/1 ARM, your rate will be fixed for the first seven years and then may adjust according to the ARM’s margin, caps, and the index which the program is based upon. Sound confusing? It does not have to be. A qualified mortgage professional can walk you through how 7 year adjustable rate mortgages work and they can provide you with an Adjustable Rate Mortgage Handbook which explains the ins and outs of these loans. You can also use our Adjustable Rate Mortgage APR Calculator and ARM vs. Fixed Rate Mortgage Calculator to help you make an informed decision.

Looking for 7/1 ARM Rates? Check out the rate tables on

Request 7 Year ARM information (2 options)
1. Select 7 year ARM from the product menu and then request rates and closing cost information by speaking with one of the companies listed on
2. Research the mortgage providers by checking out their web sites. Use the survey to get there.

Why Your Might Want to Consider a 30 Year Fixed Rate Mortgage Instead

  • Unless 7/1 ARM rates are considerably lower than current 30 year mortgage pricing, you may want to stick with the security of a fixed rate mortgage.
  • If you don’t feel extremely confident in your prospects for employment, you may want to reconsider a 7 year adjustable rate loan. If you are unemployed or have a gap in employment prior to needing to refinance, you may have a difficult time getting financing.
  • Is your real estate market appreciating, flat, or depreciating? It values are falling, you may want to staying away from an adjustable rate mortgage. If you lose a chuck of equity due to a lower home valuation, you may not be able to refinance when the 7 year introductory rate period comes to an end.

More Adjustable Rate Mortgage Programs to Explore:

1 Year ARM 5/1 ARM
2 Year ARM 7 Year ARM
3/1 ARM 10/1 ARM