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Compare Today's 7-Year ARM Rates

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Why do you want a home loan?
Showing: Purchase, Good (720-739), 7-year ARM, Single family home, Primary residence
Showing: Purchase, Good (720-739), 7-year ARM, Single family home, Primary residence

5 results:

7-year ARM

Central Bank: NMLS#407985
Lowest APR
Lowest monthly payment
Conventional 7-year ARM
Central Bank
4.0
NerdWallet rating
APR
7.258% 
Interest rate
7.375% 
Mo. payment
$2,763 
Insurance $0
Total fees
$0 
  • About this lender
    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.
First Federal Bank: NMLS#408902Conventional 7-year ARM
First Federal Bank
APR
7.325% 
Interest rate
7.5% 
Mo. payment
$2,797 
Insurance $0
Total fees
$0 
  • About this lender
    Pros
    • Over 40% of all loans last year were FHA, VA or USDA loans.
    • Average mortgage rates are on the lower side, according to the latest federal data.
    • Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
    Cons
    • No dedicated mobile app for mortgage borrowers.
    • Some loans (including home equity products) are geographically limited.
Farmers Bank of Kansas City: NMLS#613839
Great for Rate transparency
Conventional 7-year ARM
Farmers Bank of Kansas City
4.5
NerdWallet rating
APR
7.397% 
Interest rate
7.625% 
Mo. payment
$2,832 
Insurance $0
Total fees
$0 
  • About this lender
    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.
HSBC Bank: NMLS#399799Conventional 7-year ARM
HSBC Bank
5.0
NerdWallet rating
APR
7.47% 
Interest rate
7.5% 
Mo. payment
$2,797 
Insurance $0
Total fees
$0 
  • About this lender
    Pros
    • Offers an online application and loan process updates.
    • Offers mortgages for investment properties.
    • Makes it easy to browse current rates and get a customized mortgage rate quote.
    Cons
    • Does not offer FHA or VA government-backed loans.
    • No renovation mortgage options.
NBKC: NMLS#409631
Great for first-time home buyers | digital convenience | customer service
Conventional 7-year ARM
NBKC
APR
7.564% 
Interest rate
7.875% 
Mo. payment
$2,901 
Insurance $0
Total fees
$0 
  • Pros
    • Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
    • VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
    • Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
    Cons
    • HELOCs and no-down-payment loans are available only in the Kansas City metro area.
    • Mobile app focuses on online banking, not mortgages.
    • You’ll need to share contact information to see customized mortgage rates.

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.


A Beginner’s Guide to 7-Year ARMs
Last updated on December 14, 2023
Holden Lewis
Written by 
Senior Writer/Spokesperson
Michelle Blackford
Reviewed by 
Holden Lewis
Written by 
Senior Writer/Spokesperson
Michelle Blackford
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.

Learn more about adjustable-rate mortgages:

About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.
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