What is 5/1 ARM?
The Bankrate.com financial term of the day is: "5/1 ARM."
The term "5/1 ARM" might have you thinking of the very long limbs on a basketball player. Instead, it's a type of home loan, and one that can be a slam-dunk if you want to enjoy both the lower rates of an adjustable rate mortgage and some of the stability of a fixed. The 5/1 ARM offers a steady interest rate for the first five years. Then, the rate adjusts every one year, in line with a benchmark interest rate.
A 5/1 ARM is a hybrid mortgage loan that offers five years of a fixed rate and one-year adjustments after that.
To find a great rate on a home loan, visit the Mortgage section at Bankrate.com.
Fixed mortgage rates were slightly higher this week.
The 30-year fixed mortgage rate rose to 4.51 percent this week.
Mortgage rates pulled back slightly this week.
The benchmark 30-year fixed-rate mortgage rose to 4.5 percent.
The benchmark 30-year fixed mortgage rate inched lower.
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Follow this 6-month homeowner countdown so you are ready come closing day.
Pay attention to fees on prepaid cards because in most cases you can avoid them.
Sleep better at night knowing you have extra money tucked away for unplanned expenses.
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A little research could save you BIG on interest.
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