Posted on: 14th Nov, 2010 11:59 am
what is a 1 yr and a 5yr adjustable
Hi kyl_dunbar,
I guess you're speaking about 5/1 ARM. In this type of mortgage, the rate is fixed for a period of 5 years. In the 6th year, the mortgage becomes adjustable rate mortgage (ARM). The rate is tied to the 1-year treasury index or to the one-year London Interbank Offered Rate (LIBOR).
Thanks
I guess you're speaking about 5/1 ARM. In this type of mortgage, the rate is fixed for a period of 5 years. In the 6th year, the mortgage becomes adjustable rate mortgage (ARM). The rate is tied to the 1-year treasury index or to the one-year London Interbank Offered Rate (LIBOR).
Thanks