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what is a 7/1 arm

by brian schultz from Phoenix, Arizona. Nov 3rd 2015 Reply


John Moran (TheHomeMortgagePro)
#7 ranked lender in Arizona - 661 contributions

Hi Brian, a 7/1 ARM is an adjustable rate mortgage with a 7 year fixed period to begin with and then it adjusts each year after that until it is paid off (30 years). The rate after the first 7 years will move with the index (the type of index is determined at the time of lock. The rate you pay after the fixed period is the index plus the margin. The margin is a fixed number and the index moves with the market determined by the loan. I would only suggest this loan if you are thinking of being in your home short term as fixed rate loans are historically near the bottom right now and rates are almost certain to rise once the 7/1 ARM adjusts.

Nov 3rd 2015
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Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 593 contributions

A 7/1 ARM loan is a adjustable rate mortgage (ARM) that holds a fixed rate for the first seven years of the loan.

Nov 3rd 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Fixed for the first 7 years, and on the 8th year, it can go up or down based on the pre defined index it's tied too.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Nov 3rd 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 1,030 contributions

a 7/1 ARM is a adjustable rate mortgage that is fixed for 7 years and then adjusts every year after that. Typically they are 30 year total term. They can be good loans if you are in a jumbo or if you are not planning on being in the residence for much more than 7 years.

Nov 4th 2015
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