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adelina 88 [10]
3 years ago
13

You are considering a 5/1 ARM. What does the 5 represent?

Mathematics
2 answers:
umka21 [38]3 years ago
7 0
The 5 is the number of years that the interest rate is fixed (at the initial amount set when you sign the mortgage contract)

The 1 represents the idea that the interest rate will change every year after the initial 5 years are up.
Nuetrik [128]3 years ago
3 0
The 5 represents the number of years that a fixed interest rate will be applied to the loan. APEX Financial literacy
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