What is a 5/1 Adjustable-Rate Mortgage?

Things You Need to Know

5/1 Adjustable-Rate Mortgage

5/1 Adjustable-Rate Mortgage

A 5/1 Adjustable-Rate Mortgage (ARM) starts with a fixed interest rate for the first 5 years. After that, the rate adjusts annually based on market conditions, giving you flexibility for future payments.

How Does the 5/1 ARM Work?

How Does the 5/1 ARM Work?

For the first 5 years, your monthly payments remain stable with a fixed interest rate. Afterward, the rate adjusts yearly, which can increase or decrease your payments depending on the market.

Benefits of a 5/1 ARM

Benefits of a 5/1 ARM

Enjoy lower initial interest rates and payments during the fixed period. This makes the 5/1 Adjustable-Rate Mortgage ideal if you plan to move or refinance within 5 years.

Who Should Consider a 5/1 ARM?

Who Should Consider a 5/1 ARM?

This option is perfect for those expecting a short-term stay or those who anticipate refinancing before the adjustable-rate kicks in. It offers short-term affordability and flexibility.