5/1 ARM      

Overview:
This 30 year loan offers a fixed interest rate for the first five years and then turns into a 1 Year Adjustable Rate Mortgage for the remaining 25 years of the loan. This loan has a longer initial fixed period than the 3/1 Adjustable.


Is It For You?
This is the option for you if you know you will be transferred or will sell this home in the next 3 to 5 years but want a little more protection than the 3/1 ARM provides.

Caps
2% yearly / 5% life of loan

Margin
2.75%

Index
1 Year T-Bill
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30 Year Fixed
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3/1 ARM
5/1 ARM
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