f23fe56e_Mortgage_Types___Union__Description
[Type] 5/1 Adjustable Rate Mortgage [Benefits] The interest rate on this loan is usually lower than that of a 7/1 ARM. This program provides even more interest rate savings for those borrowers comfortable with the shorter 5 year fixed rate scenario. [Description] 
The interest rate on this loan program is fixed for the first five years. After that period the rate adjusts annually for the remaining 25 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