Question

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

Answer 1

Answer:

  B. The number of years between adjustments in the interest rate

Step-by-step explanation:

The "5" in "5/1" means there will not be any adjustment in interest rate for the first 5 years.

The "1" in "5/1" means interest rates may be adjusted at 1-year intervals after the initial 5-year period.

Answer 2

Answer: The number of years between adjustments in the interest rate

Step-by-step explanation:

APEX