Question

You are considering a 5/1 ARM. What does the 5 represent?

Answer 1

The 5 represents the number of years that a fixed interest rate will be applied to the loan. APEX Financial literacy

Answer 2

The 5 is the number of years that the interest rate is fixed (at the initial amount set when you sign the mortgage contract)

The 1 represents the idea that the interest rate will change every year after the initial 5 years are up.