What is meant by a 5/1 Hybrid Adjustable-Rate Mortgage or 5 /1 ARM?
5/1 Hybrid Floating Rate (5/1 ARM) mortgage loan begins with an initial 5-year fixed rate term followed by an annual interest rate adjustment. Among the terms, 5 refer to the year in which the fixed interest rate is applied, and 1 refers to the frequency at which interest rates are adjusted thereafter (once a year). … Read more