ARM mortgage rates update for November 11, 2025

Continue reading as we detail ARM specifics, assess situations where an ARM might be preferable to a fixed-rate mortgage, and examine ARM rates from several leading lenders.

You can see the previous business day’s ARM rates report here.

The typical interest rate for an adjustable-rate mortgage

As of November 10th, Coins2Day examined the latest available figures. The institutions supplied these sample rates, each predicated on distinct assumptions concerning a hypothetical borrower's credit standing and geographic area. These estimates might incorporate an assumption of mortgage discount points. Should you decide to apply, be aware that the actual rate you're offered could differ from the sample rates presented.

A 7/6 ARM features a fixed interest rate for the initial seven years, followed by adjustments occurring every six months.

Fixed-rate versus adjustable-rate mortgages

Around 92% of homeowners with loans choose fixed-rate mortgages. Fixed-rate loans, unlike adjustable-rate mortgages (ARMs) where rates can fluctuate after an initial set period, keep the same interest rate for the entire duration of the loan. This predictability understandably makes them a preferred option.

However, ARMs offer benefits in specific situations. In reality, you could be part of the 8% of homeowners who view this loan type as a chance.

When to pick ARM loans

Consider an ARM if you're in one of these three groups of homebuyers:

• Short-term/starter home buyers: For those certain they won't remain in their residence for an extended duration, an ARM might prove a wise selection. You could potentially benefit from the initial reduced fixed rate and divest the property prior to the rate adjustment period commencing.
• Real estate investors: ARMs appeal to investors for similar reasons as in the point above. These buyers may secure a low initial rate, then sell the property before the adjustment period starts or adjust the monthly rent amount if the rate increases.
• Buyers during high-interest-rate periods: Buyers may turn to ARMs when rates are high, as these loans can sometimes offer lower initial rates and potentially even reduced rates later if economic conditions improve.

Adjustable-rate mortgages (ARMs) function in a specific way.

Adjustable-rate mortgages (ARMs) initially feature a stable interest rate for a predetermined period, typically three, five, seven, or 10 years, after which they enter a variable rate phase. In this adjustment period, various elements affect how the rate shifts, such as:

• Benchmark rates: Many ARMs base their rates on benchmarks like the Secured Overnight Financing Rate (SOFR), which reflects the cost banks themselves face for borrowing cash. The U.S. Treasury publishes a new SOFR daily.
• Margins: Lenders add a fixed margin to the benchmark rate to calculate your ARM’s interest rate. Margins typically range from 2% to 3.5%, but of course will vary based on factors like the loan, the lender, and your creditworthiness. 
• Rate caps: Caps limit how much your rate can increase during specific periods or over the loan’s lifetime. These include initial adjustment caps, subsequent caps, and lifetime caps.

ARMs commonly feature 30-year durations. Popular ARM configurations consist of the 5/1 ARM, which offers five years of fixed rates followed by yearly adjustments, and the 10/6 ARM, providing 10 years of fixed rates before adjustments occur every six months. Other configurations available include 3/1 ARMs, 7/1 ARMs, and 10/1 ARMs. 

Learn more: Why the Secured Overnight Financing Rate might matter for your mortgage.

ARM to Fixed Mortgage Refinance

If circumstances change after you take out an ARM, such as if you decide you’re going to stay in the home longer than expected, it may be beneficial to refinance to a fixed-rate loan. 

For example, many Millennial and Gen Z homeowners can’t afford to upgrade and are making do with their starter homes. So, know that you’re not alone if you crunch the numbers and determine the smart move is staying put until the market improves.

The process of refinancing from an ARM to a fixed-rate mortgage is much the same as refinancing from a fixed-rate loan to another fixed-rate loan. You’ll shop rates at various lenders, provide documentation, close on your new loan, and pay off the old one.

If circumstances change—such as deciding to stay in your home longer—you can refinance from an ARM to a fixed-rate loan. This process is similar to refinancing other mortgage types: shop rates, provide documentation, close on your new loan, and pay off the old one.

ARM pros and cons

As with any mortgage type, ARMs have their benefits and their drawbacks. Working with a trusted loan officer can help you settle on the right mortgage for your needs. But, here are some basics to be aware of as you start your journey.