5-Year ARM Mortgage Rates A five year mortgage, sometimes called a 5/1 ARM, is designed to give you the stability of fixed payments during the first 5 years of the loan, but also allows you to qualify at and pay at a lower rate of interest for the first five years.

The 15-year fixed-rate mortgage increased three basis points to an average of 3.18%, according to Freddie Mac. The 5/1.

A five-year fixed mortgage comes with the downside of a large monthly payment, but you save with a lower interest rate and lower life-of-loan costs. Fixed-Rate Mortgage Basics One of the best things about fixed-rate mortgages is that you can count on your interest rate.

A fixed-rate mortgage charges a set rate of interest that does not.. the interest- rate environment means you can take out a five-year ARM with.