FinancingLoan TypesMEDIUM
5/1 ARM means:
Correct Answer
B) Fixed 5 years, adjusts annually
Fixed rate for 5 years, then adjusts annually based on market index plus margin.
Answer Options
A
5% down, 1% pointsB
Fixed 5 years, adjusts annuallyC
5 year termD
Max 5% increase year 1Why This Is the Correct Answer
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Related Topics & Key Terms
Related Topics:
index-ratescaps
Key Terms:
5/1 ARMfixed then adjusts
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