5/5 (Five-Year) Adjustable Rate Mortgage

And keep those low payments for at least five years.

Starting at a low 5.750%Rate (6.383%APR[1] Annual Percentage Rate (APR). Current rate 5.750% (6.383% APR) is subject to change. For example on a 30-year 5/5 ARM loan of $300,000, you would make 360 monthly payments. The monthly payment in the first five years would be $1,750.72 and would be adjusted after the fifth year. ), the 5/5 ARM is one of the best and most flexible mortgage loans anywhere—whether you're purchasing a home or simply want to refinance with a better bank.

With more stability than a traditional ARM, the interest rate can only change every five years after the five-year starting-rate period.

If mortgage rates go down later, simply lower your rate with our unique Mortgage Rate Modification program for a reasonable fee.

Remember, we don't charge loan origination fees—so you'll save thousands when you buy a home in a high-cost area. Enjoy the Star One difference.

Why the 5/5 ARM?

Lock in today's interest rate for at least five years
Lower start rate compared to fixed-rate options
Period and lifetime caps limit future interest rates increases
Lower your interest rate later with Mortgage Rate Modification if rates drop
Get an extended five-year period for changes in rate and payment compared to the traditional one-year adjustment after the initial interest-rate period
No loan origination fees—save $$$
No prepayment penalty

Calculate a 5/5 ARM payment

Enter a mortgage amount — up to $5 million

Compare with other adjustable-rate mortgages

30-Year 5/5 Adjustable-Rate Mortgage [2] The 5/5 adjustable-rate mortgage (also known as a "5/5 ARM") is a 30-year loan that has a fixed interest rate for the first five years. For the remaining 25 years, the interest rate is variable.

The current interest rate for the first five years is 5.750% (6.383% APR for conforming loans, or 6.482% APR for jumbo loans).

After five years, the interest rate and APR will adjust every five years, depending on market conditions, based on an index and margin.

This means that the interest rate and APR—and monthly payments—may increase or decrease every five years after the initial five-year period.

You can use our mortgage calculator to calculate an estimated monthly payment for the first five years of this loan.

A sample payment scenario for a loan of $300,000 at the current 5.750% interest rate (6.383% APR) would be 60 payments of $1,750.72, followed by 300 payments based on future variable rates which adjust every five years.

Loan payments do not include taxes and insurance.

Rate

5.750%

APR Conforming[4] [5] [6]

6.383%

APR Jumbo [7] [4] [5]

6.482%

Get Started

5-Year Fixed-to-Adjustable-Rate Mortgage [8] The 5-year fixed-to-adjustable-rate mortgage (also known as a "5-year ARM") is a 30-year loan that has a fixed interest rate for the first five years. For the remaining 25 years, the interest rate is variable.

The current interest rate for the first five years is 5.875% (6.358% APR for conforming loans, or 6.457% APR for jumbo loans).

After five years, the interest rate and APR will adjust every year, depending on market conditions, based on an index and margin.

This means that the interest rate and APR—and monthly payments—may increase or decrease every year after the initial five-year period.

You can use our mortgage calculator to calculate an estimated monthly payment for the first five years of this loan.

A sample payment scenario for a loan of $300,000 at the current 5.875% interest rate (6.358% APR) would be 60 payments of $1,774.61, followed by 300 payments based on future variable rates which adjust every year.

Loan payments do not include taxes and insurance.

Rate

5.875%

APR Conforming[4] [5] [6]

6.358%

APR Jumbo [4] [5] [7]

6.457%

Get Started

3-Year Fixed-to-Adjustable-Rate Mortgage [9] The 3-year fixed-to-adjustable-rate mortgage (also known as a "3-year ARM") is a 30-year loan that has a fixed interest rate for the first three years. For the remaining 27 years, the interest rate is variable.

The current interest rate for the first three years is 5.750% (6.412% APR for conforming loans, or 6.546% APR for jumbo loans).

After three years, the interest rate and APR will adjust every year, depending on market conditions, based on an index and margin.

This means that the interest rate and APR—and monthly payments—may increase or decrease every year after the initial three-year period.

You can use our mortgage calculator to calculate an estimated monthly payment for the first three years of this loan.

A sample payment scenario for a loan of $300,000 at the current 5.750% interest rate (6.412% APR) would be 36 payments of $1,750.72, followed by 324 payments based on future variable rates which adjust every year.

Loan payments do not include taxes and insurance.

Rate

5.750%

APR Conforming[4] [5] [6]

6.412%

APR Jumbo [4] [5] [7]

6.546%

Get Started

7-Year Fixed-to-Adjustable-Rate Mortgage [10] The 7-year fixed-to-adjustable-rate mortgage (also known as a "7-year ARM") is a 30-year loan that has a fixed interest rate for the first seven years. For the remaining 23 years, the interest rate is variable.

The current interest rate for the first seven years is 6.000% (6.348% APR for conforming loans, or 6.419% APR for jumbo loans).

After seven years, the interest rate and APR will adjust every year, depending on market conditions, based on an index and margin.

This means that the interest rate and APR—and monthly payments—may increase or decrease every year after the initial seven-year period.

You can use our mortgage calculator to calculate an estimated monthly payment for the first seven years of this loan.

A sample payment scenario for a loan of $300,000 at the current 6.000% interest rate (6.348% APR) would be 84 payments of $1,798.65, followed by 276 payments based on future variable rates which adjust every year.

Loan payments do not include taxes and insurance.

Rate

6.000%

APR Conforming[4] [5] [6]

6.348%

APR Jumbo [4] [5] [7]

6.419%

Get Started

10-Year Fixed-to-Adjustable-Rate Mortgage [11] The 10-year fixed-to-adjustable-rate mortgage (also known as a "10-year ARM") is a 30-year loan that has a fixed interest rate for the first 10 years. For the remaining 20 years, the interest rate is variable.

The current interest rate for the first 10 years is 6.125% (6.359% APR for conforming loans, or 6.393% APR for jumbo loans).

After 10 years, the interest rate and APR will adjust every year, depending on market conditions, based on an index and margin.

This means that the interest rate and APR—and monthly payments—may increase or decrease every year after the initial 10-year period.

You can use our mortgage calculator to calculate an estimated monthly payment for the first 10 years of this loan.

A sample payment scenario for a loan of $300,000 at the current 6.125% interest rate (6.359% APR) would be 120 payments of $1,822.83, followed by 240 payments based on future variable rates which adjust every year.

Loan payments do not include taxes and insurance.

Rate

6.125%

APR Conforming[4] [5] [6]

6.359%

APR Jumbo [4] [5] [7]

6.393%

Get Started

What is the difference between a 5/5 ARM and a 5-Year ARM?

Star One's 5/5 Fixed-to-Adjustable Rate Mortgage—also known as the 5/5 ARM—offers a fixed interest rate for the first five years. After that, the interest rate will adjust every five years (may increase or decrease).

The 5-Year Fixed-to-Adjustable Rate Mortgage—also known as a 5-Year ARM or 5/1 ARM—also offers a fixed interest rate for the first five years. After that the interest rate will adjust every year (may increase or decrease), instead of every five years.

Possible interest-rate increases every five years on a 5/5 ARM are limited by 2% (period cap), never to exceed 5% more than the starting rate (lifetime cap). The 5/5 ARM is not available for investment properties.