Question

You are considering a 5/1 ARM. What does the 1 represent?
A) the number of years between adjustments in the interest rate
B) the interest rate of the initial, fixed-rate loan period
C) the total number of years in the loan
D) the number of years that a fixed interest rate will be applied to the loan

Answer 1

1 means annually. The loan adjusts once a year after the initial 5 or 7 year fixed term

Answer 2

@alexislovee