f23fe56e_Mortgage_Types___Union__Description
[Type] 7/1 Adjustable Rate Mortgage [Benefits] This is a very popular mortgage program as the average life of a mortgage loan is about 7 years. The interest rate is typically lower than a fixed rate and a 10/1 ARM but the program still provides 7 years of fixed rate security. [Description] 
The interest rate on this loan program is fixed for the first seven years. After that period the rate adjusts annually for the remaining 23 years of the 30 year loan term. Each rate adjustment is predicated on a pre-selected index (usually LIBOR or Treasury Bill) plus a margin of interest. Annual and lifetime rate caps provide some protection against rising rates.
Mortgage Types | Union
Description