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What Is A 5/25 ARM?
Question: What is a 5/25 ARM?
Answer: An ARM is a loan product with payments and interest rates that adjust at certain intervals. A fixed-rate loan has one interest rate and a set monthly payment for the life of the loan. A 5/25 ARM is a loan product with a fixed rate during its first five years, and then an adjustable rate for the 25 years of the remaining loan term.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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