Adjustable Rate Mortgages at the Top Five US Bank Mortgage Lenders

Since the price of housing has become so expensive, a number of home buyers continue to look for lower monthly mortgage payments with an adjustable rate mortgage.  By reducing the mortgage rate on a home loan by .500%, a borrower a may be able to lower their payments by $31.37 a month for every $100,000 borrowed.  Of course, the trade off is the potential for a rising rate and monthly payment when the adjustable rate mortgage adjusts in the future.

The advantage of the 5/1 adjustable rate mortgage (ARM) is that this home loan has an initial five year fixed -interest rate.  After this initial five year fixed term, the mortgage rate will adjust on an annual basis according to an index plus a margin.

Current mortgage rates for 5/1 adjustable rate mortgages offered by the five largest US banks include the following rate and point options:

Chase Bank offers a 5/1 ARM with a rate of 4.75% and no points with an APR of 3.847%.
Chase Bank mortgage can be reached at 800-873-6577.

Bank of America offers a 5/1 ARM at 4.00% with 0.875 points and an APR of 3.655%.
Bank of America mortgage operations can be reached at 800-551-7975.

Citibank does actively market a 5/1 ARM.  Rates were not available.
To contact Citibank mortgage originations the phone is 800-667-8424.

Wells Fargo Bank promotes a 5/1 adjustable rate mortgage with an interest rate of 4.00% with 1 point and a 3.663% APR.
Wells Fargo Bank mortgages can be contacted at 877-937-9357.

US Bank markets a 5/1 ARM at 4.125% and no pints with an APR of 3.948%.
US Bank mortgages loan personnel can be contacted at 888-831-7524.

Just for good measure, Quicken Loans offers a 5/1 ARM at 3.875% with 1.875 points and an APR of 3.654%.
Quicken Loans can be reached at 800-251-9080.

Mortgage rates continue to remain low though the forecast is for rates to rise in the coming months.  During periods of rising rates, borrowers should generally consider locking into the current low fixed interest rates that are available in the mortgage market.  Whether mortgage interest rates will rise is open for debate, however rates are highly unlikely to fall any further and will inevitably begin to rise at some point over the next few months or years.

The mortgage rates from the mortgage lenders listed were obtained on January 8, 2010.  Mortgage rates are subject to change.  All loans are subject to bank approval, additional conditions may apply.