In a 5/1 ARM, how long is the initial fixed-rate period?

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Multiple Choice

In a 5/1 ARM, how long is the initial fixed-rate period?

Explanation:
In a hybrid ARM, the first number shows how long the rate stays fixed. So a 5/1 ARM has an initial fixed-rate period of five years. After those five years, the rate can adjust, with adjustments occurring once per year (the “1” indicates annual adjustments). The other options don’t describe the length of the fixed period.

In a hybrid ARM, the first number shows how long the rate stays fixed. So a 5/1 ARM has an initial fixed-rate period of five years. After those five years, the rate can adjust, with adjustments occurring once per year (the “1” indicates annual adjustments). The other options don’t describe the length of the fixed period.

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