Buy or refi with a 5-year ARM for 3.125%, no fees

House keys on top of mortgage contract is offering one of July's best deals on a 5-year adjustable-rate mortgage.

It's charging borrowers in 25 states across the country an introductory rate of just 3.125% with no points and no lender fees. That's a quarter-point less than the national average for 5/1 ARMS.

Can you do better? Click here to compare this deal with the best mortgage rates from scores of other lenders in your area.

Principal and interest payments on the BestRateUSA loan would be just $428 per month for every $100,000 borrowed under the introductory rate.

You can use our adjustable-rate mortgage calculator to determine the monthly payment for the exact amount you want to borrow with this loan.

It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe if you want to pay off the loan.

The interest rate caps for this ARM are 5/2/5, which means the interest rate can't go up more than:

Although mortgage rates have defied all expectations and declined so far this year, it's a pretty safe bet that rates will move higher, perhaps substantially higher, by the time this loan adjusts in five years.

That means your rate could hit 8% at the first adjustment and max out at that rate.

Like most adjustable-rate loans, this type of loan is best for borrowers planning to sell, or at least refinance, before the first adjustment, depending on where rates are at that time.

In case you can't sell or refinance, it's important to make sure you can still afford the monthly payments if you're stuck with this loan for more than five years. At 8%, your monthly principal and interest payments for this loan would jump to $734 per month for every $100,000 borrowed. is owned by GMH Mortgage Services LLC, which is based in Conshohocken, Pa., and enjoys an "A" grade from the Better Business Bureau.

This offer is good for purchase or refinance in Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia and the District of Columbia.

To qualify for this loan, you'll need:

You don't want to drain your savings and take on mortgage payments that are a struggle to make every month. Here's how to find the price range that's right for you.

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