What is a 5/1 ARM? (Adjustable Rate Mortgage)
An adjustable rate mortgage (ARM) is a mortgage with an interest rate that is fixed for a set number of years and then adjusts yearly following that set timeframe. A 5/1 ARM refers to an adjustable rate mortgage where the interest rate is fixed for 5 years and then adjusts once per year afterwards.
5-year arm mortgages vs. other mortgage types
5-year arm mortgages are a popular form of financing, but there are other mortgage opportunities at your disposal. Here’s a look at some alternative mortgage structures and how they might compliment your home buying needs.