5/1 Adjustable Rate Mortgage (ARM)

Definition

A type of home loan for which the interest rate varies during the life of the loan. The mortgage begins with an initial rate that is fixed for a set amount of time, in this case 5 years. The interest rate then adjusts every 1 year for the remainder of the loan, based on fluctuations in market interest rates. The indices used to determine rate adjustment are based on standard tools, such as the 1 year Treasury note or the LIBOR. Nearly all ARMs have an interest rate adjustment cap, beyond which a rate cannot jump in any single 1 year adjustment period. They will also typically have an interest rate ceiling that the adjustments cannot exceed for the life of the loan. Also called 5/1 ARM or 5/1 Hybrid ARM.

单词	5/1 Adjustable Rate Mortgage (ARM)
释义	5/1 Adjustable Rate Mortgage (ARM) Definition A type of home loan for which the interest rate varies during the life of the loan. The mortgage begins with an initial rate that is fixed for a set amount of time, in this case 5 years. The interest rate then adjusts every 1 year for the remainder of the loan, based on fluctuations in market interest rates. The indices used to determine rate adjustment are based on standard tools, such as the 1 year Treasury note or the LIBOR. Nearly all ARMs have an interest rate adjustment cap, beyond which a rate cannot jump in any single 1 year adjustment period. They will also typically have an interest rate ceiling that the adjustments cannot exceed for the life of the loan. Also called 5/1 ARM or 5/1 Hybrid ARM.
随便看	finding aid finding and development (F&D) findings, conclusions, and recommendations (FCR) fine fineness fine particle fine print fine trade bill finger finish finished goods finished goods inventory finite population finite replenishment rate fire fire aisle fire and allied perils Fire, Casualty, and Surety (FC&S) Bulletins fire damage limit fire department service clause firefighting Firefox fire insurance policy fire legal liability fire maps