For which of these ARMs will the interest rate stay fixed for 4 years and then be adjusted every year after that?
Mathematics · Middle School · Tue Nov 03 2020
Answered on
The ARM (Adjustable Rate Mortgage) you are referring to, where the interest rate stays fixed for the first 4 years and then adjusts every year thereafter, is commonly known as a '4/1 ARM'. In this type of mortgage, the '4' represents the number of years the initial interest rate is fixed, and the '1' indicates that after the initial fixed-rate period, the interest rate will be adjusted every year.