5 1 Arm Loan Rates

Contents

  1. – 5/1 Adjustable Rate Mortgage 5/1 ARM – the rate is fixed for a period of 5 years after which in the 6th year the loan becomes an adjustable rate mortgage (ARM). The adjustable rate is either tied to the 1-year treasury index or to the one-year london interbank Offered Rate ("LIBOR"), and is added to a pre-determined margin (usually between.