NerdWallet Home Page

Compare Today's 7-Year ARM Rates

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners and here's how we make money.

Showing: Purchase, Good (720-739), 7-year ARM, Single family home, Primary residence.

License information

3 results:

7-year ARM

License information

Sort by

EXPLORE QUOTE

Farmers Bank of Kansas City: NMLS#613839

Lowest APR

Lowest monthly payment

Great for Rate transparency

Conventional 7-year ARM

4.5

NerdWallet rating

APR

7.533%

Interest rate

Mo. payment

$2,662

Insurance $0

Total fees

About this lender

Visit lender's website

Pros

Displays customized rates, with fee estimates, without requiring contact information.
Offers home equity loans and lines of credit.
Mortgage origination fees are on the low side compared to other lenders, according to the latest federal data.

Cons

Doesn’t offer government-backed FHA or USDA loans, or adjustable-rate mortgages.
Home renovation loans are not available.
Mortgage rates are on the high side compared to other lenders, according to the latest federal data.

EXPLORE QUOTE

Central Bank: NMLS#407985Conventional 7-year ARM

4.0

NerdWallet rating

APR

7.588%

Interest rate

7.125%

Mo. payment

$2,695

Insurance $0

Total fees

About this lender

Visit lender's website

Pros

Among the best when it comes to online convenience.
Offers a full selection of mortgage types and products, including jumbo, home equity, and government loans.
Claims to offer preapproval within 24 hours of loan application.

Cons

You'll have to complete a loan application to see mortgage interest rates.
Bank branch locations limited to the Midwest.
Does not offer home equity lines of credit.

EXPLORE QUOTE

First Federal Bank: NMLS#408902Conventional 7-year ARM

3.5

NerdWallet rating

APR

7.588%

Interest rate

7.125%

Mo. payment

$2,695

Insurance $0

Total fees

About this lender

Visit lender's website

Pros

Offers government-backed loans and some harder-to-find products, such as jumbo loans for investment and multifamily properties.
Home renovation loans are available.
Offers home equity loans and lines of credit.

Cons

Mortgage rates are not published online.
Bank branches are limited to eight states.
Consumers might have trouble finding contact information.

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.

Trends and Insights

Mortgage rate trends (APR)

NerdWallet’s mortgage rate insight

6.772%

30-year fixed-rate

“

On Tuesday, July 23, 2024, the average APR on a 30-year fixed-rate mortgage fell 3 basis points to 6.772%. The average APR on a 15-year fixed-rate mortgage fell 2 basis points to 5.886% and the average APR for a 5-year adjustable-rate mortgage (ARM) remained at 7.637%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 5 basis points higher than one week ago and 8 basis points lower than one year ago.

A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.

Current mortgage and refinance rates

Accurate as of 07/23/2024

Product	Interest Rate	APR
30-year fixed-rate	6.704%	6.772%
20-year fixed-rate	6.376%	6.465%
15-year fixed-rate	5.775%	5.886%
10-year fixed-rate	5.589%	5.764%
7-year ARM	6.790%	7.510%
5-year ARM	6.639%	7.637%
3-year ARM	8.125%	8.355%
30-year fixed-rate FHA	5.743%	6.582%
30-year fixed-rate VA	5.759%	6.142%

Data source: ©Zillow, Inc. 2006 - 2021. Use is subject to the Terms of Use

A Beginner’s Guide to 7-Year ARMs

Last updated on December 14, 2023

Written by

Senior Writer/Spokesperson

Reviewed by

Written by

Senior Writer/Spokesperson

Reviewed by

What is a 7-year ARM?

A 7-year adjustable-rate mortgage is an adjustable-rate mortgage (ARM) with an interest rate that is initially fixed for seven years. After seven years are up, the interest rate can change periodically with the broader market.

The initial fixed interest rate is typically at a low introductory level. After the initial fixed period, the rate can adjust up or down every six months. The rate adjustments are tied to a benchmark interest rate index. In most cases, the index is the secured overnight financing rate, or SOFR. This rate tends to rise when the economy is expanding and to fall when the economy weakens.

The 7-year ARM's name may vary by lender. Some institutions call it the 7/6 ARM, where the "7" refers to the starting fixed-rate period in years, and the "6" refers to the number of months between rate adjustments. It may sometimes be called the 7y/6m or 7yr/6mo ARM. It used to be called the 7/1 ARM because the rate was adjusted annually before regulatory changes were made.

7-year ARM mortgage rates

NerdWallet’s mortgage comparison tool can help you find competitive 7-year ARM rates today, whether you are buying a home or refinancing. In the filters above, enter details about the loan you’re looking for, and you can see rate quotes without providing personal information.

When to consider a 7-year ARM

A 7-year ARM makes sense if you plan to refinance your mortgage or sell your house before the introductory rate expires. You might be able to qualify for a larger loan because of the low introductory rate. Keep in mind that the interest rate and monthly payment could increase if the index rate rises anytime after the first seven years are up.

ARM glossary

Index: The benchmark rate that when added to the margin yields each six-month period's interest rate. Most ARMs use the 30-day average secured overnight financing rate (SOFR), which reflects market conditions.
Margin: A number of percentage points that the lender adds to the index to arrive at the interest rate you'll pay during a six-month period. For example, an index rate of 5% plus a margin of 2.75 percentage points would mean your interest rate would be 7.75%.
Rate cap: The maximum amount your loan’s interest rate can go up or down the first time it adjusts and each time thereafter.