7 Year ARM Rate Mortgage
A 7 year ARM rate is very uncommon with most banks and with most customers. Your interest rate will be fixed for 7 years and then start adjusting to the current rates each year after that.
It's exactly the same as the 1 year arm and the 3 year arm but it's fixed for 7 years so there's less risk involved. There is very little risk compared to the fixed rate mortgage because the average person only lives in their home for 7 years. So most people who get this mortgage wouldn't ever even see a new interest rate.
If you do end up getting a new rate after those 7 years of paying the same mortgage payment it will be very tough to adjust to. It's not a very good mortgage for anyone to get especially in this economy. If you interest rate goes up 2% and you have to start paying that new mortgage every month you will not be very happy you opted into it.
What's the benefit?
Your hoping by getting this type of mortgage would be for rates to lower or even stay the same. If they stay the same then you probably started with a slightly better rate because if a small amount of added risk.
If rates go down then your interest rate will lower as well after the 7 years. The problem is that interest rates are at an all time low in this economy so they probably wont go too much lower. How much lower could they go when starting at 4-5%? | 
