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.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.
Car loans for consumers with the worst credit, so-called subprime and deep subprime, have fallen to its lowest share of auto loans overall since 2012.
... Read more