Best Lenders for an Adjustable Rate Mortgage Now

Mutual of Omaha Mortgage had the lowest eight-year cost on both a 7/6 and a 5/6 adjustable-rate mortgage in Bankrate's lender comparison, updated November 2 and 3, 2026. It also charged 1.721 and 1.88 points to get those costs. California Bank and Trust charged 0.875 points on every ARM it listed and had the lowest APR on the 7/6 and the 5/6. That makes it the better fit for a borrower who wants to keep more cash at closing.

The comparison comes as demand is rising. ARMs made up 11.3% of mortgage applications in the week ending October 23, 2026, according to the Mortgage Bankers Association's weekly survey. The MBA's Joel Kan called it "the highest level in more than a year." The same survey had the 5/1 ARM averaging 6.41% and the 30-year fixed conforming rate averaging 7.37%.

That gap is what draws borrowers to ARMs. Bankrate's figures show it is only part of the cost. The starting rate is fixed for five or seven years. After that, the lender's margin and the loan's caps set the rate, and lenders do not advertise either one alongside the starting rate.

Bankrate sorts the table by eight-year total cost. All four lenders quote 7/6, 5/6 and 10/6 products, which adjust every six months once the fixed period ends. None of them quoted the older once-a-year 5/1 or 7/1 structure in this table. For comparison, Bankrate put the national average APR at 6.52% for a 5/1 ARM and 6.84% for a 7/1 ARM as of November 2.

Mutual of Omaha had the lowest eight-year cost in both the seven-year and five-year categories: $402,705 on the 7/6 and $422,684 on the 5/6, according to Bankrate. Its 5/6 starting rate of 5.625% was the lowest of the four lenders. Bankrate rated the lender 5 out of 5.

The low rate comes with high points. Mutual of Omaha charged 1.88 points on the 5/6 and 1.721 on the 7/6, which roughly doubles California Bank and Trust's 0.875. It suits a borrower who has the cash to pay points at closing and expects to keep the loan for most of the eight-year window.

Optimum First matched Mutual of Omaha's 5.875% rate on the 7/6. It charged 1.962 points for that rate, the most of any 7/6 in the table, and still came out $1,801 more expensive over eight years. On the 5/6 it charged fewer points than Mutual of Omaha (1.661 against 1.88) for a rate one-eighth of a point higher.

On these figures, Optimum First is the runner-up in each category. It is worth quoting as a check on Mutual of Omaha rather than as a first choice.

California Bank and Trust charged 0.875 points on all three products. It had the lowest APR on the 7/6 (6.392%), the 5/6 (6.417%) and the 10/6 (6.466%). Its 10/6 cost $500,760 over eight years, more than $20,000 below the other three lenders.

Its 5/6 is the weak spot. That loan cost $442,848 over eight years, the highest of the four, even though it had the lowest 5/6 APR. California Bank and Trust suits a borrower taking a 7/6 or 10/6 who wants to limit closing costs. Its five-year product does not.

HSBC had the highest 7/6 rate in the table (6.142%), the highest 7/6 APR (6.638%) and the highest 7/6 eight-year cost ($415,964). It also had the highest 10/6 cost at $527,283. Its 5/6 charged one point, the second-lowest in that category. Bankrate rated the lender 3 out of 5.

On Bankrate's figures, none of HSBC's products beat the cheapest lender in its category. It makes sense mainly for a borrower who can get relationship pricing that these published figures do not show.

The first difference is points against rate. On the 7/6, Mutual of Omaha saved $2,062 over eight years compared with California Bank and Trust. It charged 0.846 more points to do it. Bankrate's figures do not include the loan amount behind them, so we cannot convert those points into dollars here. A borrower who sells or refinances well before year eight may never earn back the extra points.

The second difference is the five-year fixed period. At every lender, the 5/6 started at a lower rate than the 7/6 but cost more over eight years. The gap ran from $19,979 at Mutual of Omaha to $38,081 at California Bank and Trust. A 5/6 resets three years into that window, so those numbers show what happens after the reset, not just the starting rate.

The third difference is the one the table leaves out: the margin and the caps. After the fixed period, the rate becomes the index plus the lender's margin, rounded to the nearest one-eighth of a percent, according to an April 2026 MGIC training handout. Margins on conforming ARMs generally range from 2.00% to 3.50%, HSH.com reports. Bankrate's table does not list any of the four lenders' margins.

Most ARMs also have a floor, usually equal to the margin, according to CrossCountry Mortgage. A loan with a 3.50% margin can never fall below 3.50%, however low SOFR drops. A higher margin raises the cost when rates rise and cuts the benefit when they fall.

Our sources do not include minimum credit scores, down payment requirements or lender fees for these four lenders. They also do not cover the large retail lenders where many borrowers start shopping. Those terms have to come from the loan estimate. To compare quotes fairly, every lender should answer the same questions.

A lender that will not give a margin or a cap structure before an application has made the comparison for the borrower. The mechanics of a 5/1 ARM are the same whichever lender writes it. The margin is what differs.

An ARM saves money mainly when the borrower sells or refinances before the rate resets. MBA Chief Economist Mike Fratantoni projected rates near 7.3% through the end of 2026 and above 7% through 2027, MPA Magazine reported. If that forecast holds, refinancing out of a five-year ARM may not be much cheaper than staying in it.

Bankrate's table also covers only four lenders, and it was a snapshot from November 2 and 3. The MBA's 5/1 average moved from 6.54% to 6.46% to 6.41% over three weeks in October. A ranking based on one day's quotes can change by the time a borrower locks.

For a borrower choosing a seven-year ARM who can pay about 1.7 points at closing, Mutual of Omaha Mortgage's 7/6 had the lowest eight-year cost in Bankrate's November comparison. A borrower who would rather pay 0.875 points should take California Bank and Trust's 7/6. It cost $2,062 more over eight years and had the lowest APR. Bankrate's figures show no reason to choose HSBC.

For a 10-year fixed period, California Bank and Trust was the clear low-cost choice. Mutual of Omaha led on the five-year product, but every 5/6 in the table cost more over eight years than the same lender's 7/6. Borrowers who are not certain they will move within five years should take the seven-year loan.

Before committing to any of them, a borrower should get written quotes from at least three lenders this week. Each quote should list the margin, the caps and the fully indexed rate. Lenders are competing for more ARM business than they have seen in over a year, and the margin is the number most likely to differ between quotes.