Posted on: 01st Jun, 2010 08:22 pm
avantage of a 5 year arm Vs a 30 year fixed?
Hi Goleafs,
I guess you are speaking about a 5/1 ARM. This loan has a low introductory rate which remains as it is for the first five years. After this term is complete, the interest rate will adjust up or down by 2% a year for the remaining 25-year term. In case of a 30 year fixed, the rate will remain the same for the whole term of the loan.
Thanks
I guess you are speaking about a 5/1 ARM. This loan has a low introductory rate which remains as it is for the first five years. After this term is complete, the interest rate will adjust up or down by 2% a year for the remaining 25-year term. In case of a 30 year fixed, the rate will remain the same for the whole term of the loan.
Thanks
Short term loan, lower rate, less interest.
